1
VOLUME – I
Sr.No.
Pages.
1
Introduction
2.
Preventive Department
3.
Imports and Exports by Sea
4.
Container and Containerization
5.
Inland Container Depots and Container
Freight Stations
6.
Import Clearance Procedure
7.
Export Clearance Procedure
8.
EDI/RMS
9.
Transit and Transhipment
10.
Warehousing
11.
Carnet and Triptique
12.
Ship Stores
13.
Coastal Trade
14.
Oil and Petroleum
2
CHAPTER – 1
INTRODUCTION
1.1.1 HISTORY
Tax has an extremely long established history, both in India and internationally. In
the ancient times, it was a „custom‟ for a merchant to make a suitable offering to the
King on entering his kingdom for trade. Driven by the need for resources to run the
royal administration, this custom morphed into „customs duty‟. The reason for so
much of importance being accorded to public finance and the taxation system since
early human civilization is not really far to seek. According to Chanakya, the power of
the government depended upon the strength of its treasury. He states: “From the
treasury comes the power of the government, and the earth, whose ornament is the
treasury, is acquired by means of the treasury and army.''
The growth and development of modern system of taxation is traced to imposition
of poll tax in Britain in 1377. First imposition of customs duty in modern times was on
basic commodities in Britain in 1643 and on beer and wine in the USA in 1764.
Customs duties are known to have been levied in both Japan and China in ancient
and medieval periods.
1.2.
EVOLUTION OF LEGISLATIVE ARCHITECTURE
In India too, there is evidence of imposition of import duties during the ancient
and medieval era. However, the modern period may be said to begin with the
establishment of the first Board of Revenue in Calcutta in 1786. The provincial import
duty was subsequently made applicable through out the territories through the
Customs Duties Act, 1859 with the general rate of duty of 10 per cent. Sea Customs
Act was passed by the British Government in 1878. The Indian Tariff Act was passed
in 1894. Thereafter, Air Customs was covered under the India Aircrafts Act of 1911
and the Land Customs Act was passed in 1924. The Indian Tariff Act 1934 governed
the Customs tariff.
After Independence, the Constitution of India provides for division of the taxation
powers between the Union and the States. By virtue of entry No.83 in List-I (Union
3
List) to the Schedule VII to the Constitution, the Union Government is empowered to
levy “duties of Customs including export duties.” The earlier legislations pertaining to
Customs such as Sea Customs Act 1878 and Land Customs Act 1924 were
consolidated into the Customs Act 1962. Similarly, the Indian Tariff Act 1934 was
replaced by the Customs Tariff Act (CTA) 1975, being an Act to consolidate and
amend the laws relating to customs duties. The First and Second Schedule to the
CTA comprise the Import and Export tariff, specifying the rates of Customs duties
levied under the Customs Act on import and export of goods respectively.
The Customs Act came into force
with effect from February 1, 1963 vide
notification M.F.(D.R.&I) No.16-Customs, dated 23.01.1963 and extends to the
whole of India [section 1(2)] which includes the territorial waters of India [section
2(27)] which means the waters extending into the sea upto the limit of contiguous
zone of India under section 5 of the Territorial Waters, Continental Shelf, Exclusive
Economic Zone and Other Maritime Zones Act, 1976 and includes any bay, gulf,
harbour, creek or tidal river [section 2(28)].
The Customs Tariff Act, came into force with effect from August 2, 1976 vide
notification No.398-Customs, dated 31.07.1976 and extends over the same territory
as the Customs Act. The most obvious implication of extension of the Customs laws
to the EEZ and continental shelf of India is that the mineral oils, etc. extracted or
produced in the sea within such geographical area and brought to the mainland of
the country would not be covered within the ambit of imports. Similarly, materials and
equipment supplied to such installations would not amount to export.
1.3.
NATURE OF CUSTOMS DUTIES
Customs duties may be levied on goods imported into, or exported from India.
Section 12 provide that duties of customs shall be levied at such rates as may be
specified under the CTA, or any other law for the time being force, on import or
export goods. Customs duties are more prevalent on imports across the world,
4
including India. In India, only a certain export items are presently subjected to export
duties. In addition, export cess in the nature of customs duty is being levied under
different statutes on certain specified items.
In common parlance, the customs duty for which rates are prescribed under
the First Schedule to the CTA is known as Basic Customs duty (BCD. The imposition
of BCD is justified on the grounds of tariff protection to domestic industry. The
maximum rates of duty that can be levied on different tariff lines are negotiated under
the World Trade organization (WTO) and the country specific commitment regarding
the maximum rates are called Bound Rates. The rates of duties prescribed by the
Parliament under the CTA within the WTO bound rates are called the Tariff rates.
However, the effective rates of duties may be fixed by the Government at a rate
lower than the tariff rates through issue of notifications.
In addition to the BCD, section 3 of the CTA provides for levy of additional
duty of customs, commonly called the Countervailing duty (CVD), equal to the excise
duty for the time being leviable on a like article produced or manufactured in India.
The Customs Tariff Act (section 9A) provides for imposition of anti-dumping
duty where any article is imported into India at less than its „normal value‟, an anti
dumping duty not exceeding the margin of dumping in relation to such articles.
Imposition of anti-dumping duty by Department of Revenue is preceded by
determination of the normal value, margin of dumping, etc. by the Director General
(Anti- dumping), Department of Commerce following the procedure laid down in the
Customs Tariff (identification, Assessment and Collection of Anti-dumping Duty on
Dumped Articles and for Determination of Injury) Rules, 1995. These levies are
country-specific or sometimes even manufacturer/exporter specific. The Customs
administrations across world are faced with new challenge in the form of attempts to
evade anti-dumping duties through what is commonly referred to as “origin frauds”.
5
The Customs Tariff Act (section 8B) provides for levy of safeguards duty on
any article imported into India in the case of its imports in such increased quantities
and under such conditions so as to cause or threaten to cause serious injury to the
domestic industry. Levy of safeguards duty is preceded by enquiry by Directorate
General of Safeguards, Department of Revenue as per Customs Tariff (Identification
and Assessment of safeguards Duty) Rules, 1997. The Act also provides that, unless
otherwise specifically made applicable, both anti-dumping duty and safeguards duty
are not
imposed on articles imported by a hundred percent export oriented
undertaking, free trade zone and special economic zone.
The
CTA
also
provides
for
imposition
of
protective
duties
upon
recommendation made by the Tariff Commission established under the Tariff
Commission Act, 1951 under provisions of section 5. It also provides for imposition
of countervailing duty on subsidized articles where any exporting country or territory
pays any subsidy, directly or indirectly, upon manufacture, production or exportation
under section 9. No such levies have, however, been imposed by the Central
Government.
The authority for levy of a lower rate of duty under a bilateral trade agreement
is provided in section 5 of the CTA, which also provides for framing of rules of origin.
1.4.
PROHIBITION ON IMPORT OR EXPORT
No goods can be imported or exported, except in accordance with provisions of
the law. Section 11 empowers the central Government to prohibit, through issue of
notification, either absolutely or subject to pre/post clearance conditionality, import or
export of any goods if it is satisfied that it is necessary so to do for any of the twenty
two purposes listed in the sub clause (2) of Section 11.
These purposes, inter alia, include the protection of patents, trademarks and
copyrights [Section 11 (2) (n)]. Accordingly, notification No. 49/2007-Customs dated
6
8th May 2007 has been issued, which prohibits import of goods infringing intellectual
property rights of the right holders under the following Acts:
(i)
Copyright Act, 1957;
(ii)
Trade Marks Act, 1999;
(iii)
Patents Act, 1970;
(iv)
Designs Act, 2000; and
(v)
Geographical Indications of Goods (Registration and Protection) Act,
1999.
The prohibitions are subject to the conditions and procedures as specified in the
Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007.
The said twenty two purposes also include the prevention of the contravention
of any law for the time being in force [Section 11 (2) (u)]. In addition, section 111
which relates to confiscation of improperly imported goods, etc. vide sub section (d)
provides for confiscation of any goods which are imported or attempted to be
imported or are brought within the Indian customs waters for the purposes of being
imported, contrary to any prohibition imposed by or under this Act or any other law
for the time being in force. Similar provisions for confiscation of goods attempted to
be improperly exported contrary to any prohibition imposed by or under this Act or
any other law for the time being in force exist under section 113(d).
In view of the increased emphasis on Green Customs, two of the Rules relating
to trans-border movement of ozone depleting substances and hazardous wastes are
cited. The Ozone Depleting Substances (Regulation & Control) Rules, 2000 has
been framed in exercise of the powers conferred by sections 6, 8 and 25 of the
Environment (Protection) Act, 1986. The said Rules provide for prohibition of various
categories of ODS and articles containing ODS from different countries with effect
from different dates.
7
Hazardous Wastes (Management & Handling) Rules, 1989, as amended by
Hazardous Wastes (Management & Handling) Amendment Rules, 2003 has been
framed under the authority of sections 6, 8 and 25 of the Environment (Protection)
Act 1986. The said Rules, inter alia, prescribe that import of hazardous waste are not
permitted for dumping and disposal of such waste.
The relevant Acts and Rules that have significance for legality of trans-border
movement of goods have been dealt in detail in the subsequent chapters.
1.5.
ORGANIZATIONAL SET UP:
The economic affairs in the country are managed by the Ministry of Finance.
Department of Revenue under the Ministry handles issues relating to policy
formulation and implementation of tax revenues. Department of Economic Affairs
and Department of Expenditure are two other important departments of the Ministry
of Finance, besides Department of Financial Services (erstwhile Banking and
Insurance Division of the Department of Economic Affairs) and Department of
Disinvestment. The Central Board of Excise & Customs (CBEC) and Central Board
of Direct Taxes (CBDT) are administratively under control of Department of
Revenue. The CBEC came into being following the recommendations of the Direct
Taxes Administration Enquiry Committee (1958-59) and the Central Excise
Reorganization Committee (1963) and the passage of Central Board of Revenue
Act, 1963.
The Board currently has a Chairman and five other Members. Under the
Central Board of Excise & Customs (Regulation of Transaction of Business) Rules,
1964, the Chairman of the Board may distribute the business of the Board among
himself and other Members and specify cases which shall be considered jointly by
the Board.
CBEC, according to its Citizen‟s Charter, “is the apex body for administering
the levy and collection of indirect taxes of the Union of India viz. Central Excise duty,
8
Customs duty and Service Tax, and for facilitating cross border movement of goods
& services.” The Board is the administrative authority for its subordinate
organizations, including Custom Houses, Central Excise Commissionerates and the
Central Revenues Control Laboratory.
The Central Board of Excise and Customs maintains an updated website
http://www.cbec.gov.in/ which may be visited for details regarding the organization
and functioning of the Board.
Some of the Directorates that assist the Board in discharge of its functions
relating to Customs, enforcement and related matters are described in brief below:
(i)
National Academy of Customs, Excise & Narcotics (NACEN) – The
Academy with its main facility at Faridabad and regional centres imparts training to
direct recruit officers and arranges refresher and specialized courses for
departmental officers as well as the officers from Asian and African countries.
NACEN may be visited at http://www.nacen.co.cc/index.html
(ii)
Directorate Revenue Intelligence (DRI) – It is the apex customs intelligence
organization, responsible for collection, collation, analysis and dissemination of
intelligence regarding illicit trans-border movement of goods. It is also entrusted with
maintaining liaison with other domestic intelligence and enforcement agencies as
well as with foreign customs and enforcement agencies and in-depth investigation of
important cases having inter-commissionerate and international ramifications,
alerting field formations for interception of suspects and contraband goods,
assessment of current and likely trends in smuggling and advising the Ministry in all
matters pertaining to plug any loopholes and attending to such other matters as may
be entrusted by the Ministry/Board for investigation. DRI may be visited at
http://dri.nic.in/
9
(iii)
Directorate General of Central Excise Intelligence (DGCEI) – Collection,
collation and dissemination of intelligence relating to evasion of Central Excise
duties, studying of price structure, marketing patterns and classification of
commodities vulnerable to evasion of Central Excise duties, coordinating action with
agencies like Income-tax, etc. in cases involving evasion of Central Excise duties,
investigation of cases of evasion of Central Excise duties having intercommissionerate ramifications and advising the Board and the commissionerates on
the modus operand! of evasion of Central Excise duties and the appropriate remedial
measures thereof. Similar powers have also been vested in the officers of the
Directorate
in
respect
of
Service
Tax.
DGCEI
may
be
visited
at
http://www.dgcei.nic.in/
(iv)
Directorate General of Human Resource Development (DGHRD) – This
Directorate has been created by amalgamation of Directorate of Organization &
Personnel Management and Directorate of Housing and Welfare. It is mandated to
cater to the various needs connected to cadre management and staff welfare.
(v)
Directorate General of Valuation - The Directorate is entrusted with the
main task of assisting and advising the Board in Policy matters concerning Customs
Valuation; developing valuation tools (including databases) and best practices for the
effective and uniform application of valuation law; monitoring valuation trends of
sensitive commodities and taking corrective action; and providing guidance and
advise to field formations on valuation questions and for checking undervaluation /
over valuation of imported or export goods so as to prevent leakage of Customs
revenue. DGOV may be visited at http://www.dov.gov.in/newsite3/index.asp
(vi)
Directorate General of Systems and Data Management – The Directorate
handles all aspects of the implementation Customs and Central Excise
Computerisation Projects including acquisition of hardware, development and
maintenance of software, training of personnel and monitoring of expenditure budget
10
on computerisation at the Central and field level. The Risk Management Division
(RMD) of the Directorate is responsible for the roll out and management of the Risk
Management System (RMS) and the Accredited Clients Programme (ACP).
(vii)
Directorate General of Safeguards – The Directorate is entrusted with
causing the enquiry as per Customs Tariff (Identification and Assessment of
safeguards Duty) Rules, 1997 preceding the imposition of safeguards duty.
(viii)
Directorate General of Export Promotion -
(ix)
Directorate General of Inspection – It studies the working of the
departmental
machinery
throughout
the
country,
suggests
measures
for
improvement of its efficiency and rectification of important defects.
(x)
Directorate General of Vigilance - It maintains the vigilance cases against
officers of Customs & Central Excise. It maintains proper surveillance on officials of
doubtful integrity and also maintain close liaison with the Central Bureau of
Investigation, local Directorate of Revenue Intelligence and Commissionerate
Vigilance Branches to ensure that the programmes of vigilance and anti-corruption
are implemented in all Commissionerates of Customs and Central Excise and
Narcotics Department.
(xi)
Directorate General of Service Tax - The main functions assigned to the
Directorate include monitoring of the collection and assessment of service tax, study
of the implementation of Service Tax in the field and to suggest measures to
increase revenue collection; to undertake study of law and procedures,
develop a data base.
and to
11
(xii)
Directorate of Logistics – It handles assessment of needs and procurement
of equipment, weapons, marine vessels, etc. and maintenance thereof.
(xiii)
Central Revenue Laboratory - To analyse sample of goods and render
technical advice to the CBEC and its field formations in regard to dutiability or
otherwise of various goods
1.6.
CUSTOMS FORMATIONS
The work of customs administration across the length and breadth of the
country
is
performed
by
various
Commissionerates,
each
headed
by
a
Commissioner, with geographical jurisdictions notified by the Government in exercise
of powers under section 4 of the Customs Act. The extant jurisdictions are
prescribed vide notification No.63/2002-Customs (NT) dated 03.10.2002 read with
notification No.64/2002-Customs (NT) dated 24.10.2002, as amended from time to
time. The extant jurisdiction of the Chief Commissioners are prescribed vide
notification No.14/2002-Customs (NT) dated 07.03.2002, as amended. Similarly, the
extant jurisdiction of officers in the rank of Addition Commissioner/Joint
Commissioner/Deputy Commissioner
and Assistant
Commissioner
are also
prescribed vide aforesaid notification Nos. 63/2002-Customs (NT) and 64/2002Customs (NT) in terms of geographical jurisdiction of the Commissioner of Customs.
The Act vide section 7 empowers the Board to appoint the ports, airports and
inland container depots (ICD) to be the eligible for loading of export goods or
unloading of imported goods. The Board has similar powers to notify land customs
stations (LCS), land or inland water routes between LCS and international frontier
12
and ports for coastal trade.
The powers to declare a place to be warehousing
stations is vested with the Board vide section 9. However, powers to approve landing
places and specify limits of customs area (section 8) and for appointment of boarding
stations (section 9) are vested with the Commissioner of Customs.
1.7.
OFFICERS OF CUSTOMS
Section 3 of the Customs Act provides for the following classes of Customs
officers, namely –
(a) Chief Commissioner of Customs,
(b) Commissioner of Customs, which includes an Additional Commissioner of
Customs, except for the purposes of Chapter XV, as per section 2(8) of
the Act.
(c) Commissioner of Customs (Appeals),
(d) Joint Commissioner of Customs,
(e) Deputy Commissioner of Customs,
(f) Assistant Commissioner of Customs, and
(g) Such other class of officers as may be appointed for the purposes of the
Act.
In addition, section 4 provides that the Board may appoint such persons as it
thinks fit to be officers of customs. It is under the provisions of this section that the
officers of various Directorates as well as officers of Uttar Pradesh PAC, Intelligence
Bureau, etc. posted in specified regions of the country have been appointed as
officers of customs. In addition, section 6 of the Act provides that the Central
Government may entrust either conditionally or unconditionally to any officers of the
Central or State Government or local authority any functions of the Board or any
officer of customs. Accordingly, specified powers of the customs officers have been
vested with officers of Border Security Force (BSF) and Indo-Tibetan Border Police
(ITBP) wherever they are posted. Similar powers are vested with officers of Coast
Guards within the Indian customs waters. However, officers of Central Reserve
13
Police Force (CRPF) and police officers of Andaman & Nicobar Islands,
Lakshadweep Islands have been entrusted with specified powers of customs officers
within the specified territories.
The Customs Act empowers customs officers of various classes to exercise
powers conferred upon them by the Act. In addition, the Act enjoins certain functions
such as assessment of duty under section 17 to be performed by „proper officer”.
Section 2(34) provides that “proper officer” in relation to any functions to be
performed under this Act, means the officer of customs who is assigned those
functions
by
the
Board
or
the
Commissioner
of
Customs.
Different
Commissionerates have issued appropriate notifications for appointment of proper
officers.
14
CHAPTER - TWO
2.
THE PREVENTIVE DEPARTMENT
2.1.
PRELIMINARY
15
In the earlier days, the trans-border trade was less diversified and fairly limited
in terms of amplitude, media and destinations. The items of trade were few and the
governing laws for the same were simple. Violations of the regulations in force were
few and far between. The job of collection of admissible dues for the foreign trade
was entrusted to the Revenue Officers who were also responsible for enforcing the
existing statutes and for taking procedural actions in the cases of violations thereof.
Over the passage of time, however, the foreign trade developed into a
multitudinal activity assimilating various aspects of national and international
importance. This necessitated the formulation of new trade policies and laws on the
part of the State as well as the International trading fraternity. With this came the
new aspects of tax management and its violations. So, it became necessary to
expand the functional network for collection of revenue and enforcement of laws.
New departments were established to administer the same. Further, aggrandisement
of foreign trade posed operational difficulties for the staff which were assigned multifunctional responsibilities.
India has 14,880 kms of land border running through 92 districts in 17 States
and a coastline of 5,422 kms touching 12 States and Union Territories (UTs). India
also has a total of 1197 islands accounting for 2094 kms of additional coastline. In
fact, barring Madhya Pradesh, Chhattisgarh, Jharkhand, Delhi and Haryana, all other
States in the country have one or more international borders or a coastline and can
be regarded as frontline States from the point of view of border management.
It, thus, became inevitable to bifurcate the Customs manpower machinery into
two wings for the two main streams of activity. One wing has been entrusted the job
of collection of revenue while the other has been assigned the task of enforcement of
the statute related thereto. Thus the Preventive setup for Commissionerates,
seaports, dry ports (ICD and CFS), Land Customs Stations and airports came into
16
existence. Some specific Preventive Commissionerates and zones have been
formed to combat the smuggling as well as misuse of different export promotion
schemes and evasion of customs duty.
The Preventive Wing as the name would suggest, is involved in the prevention
of smuggling activities by employing various deterrent methods, like maintaining
intelligence network, cultivating informers, making searches leading to seizures,
confiscation of contraband and arrest of offenders. Under the preventive wing
function various intelligence units, which work in collaboration with each other for the
single purpose of prevention of smuggling activities.
Every country has formulated its own Customs and Excise Laws to protect its
national economy, natural resources, culture and environment. This entails putting
ban, restriction and prohibition on the import / export of certain items. In addition to
this, extensive and continuous vigil is also required to be maintained along the
international land, sea and air frontiers of the country.
Banned, restricted or prohibited goods attract lucrative premiums. The
premiums entice unscrupulous businessmen, traders, merchants, tourists and other
category of travellers to clandestinely bring into or take out of country, such goods.
Individuals, organised groups or international gangs can indulge in this activity,
known as smuggling. Tracking and immobilising such offenders is one of the primary
tasks of Customs Department in general and of Preventive Department in particular.
2.2.
SET-UP OF THE PREVENTIVE DEPARTMENT
Before going to discuss the preventive set up for each of the customs
formations i.e Commissionerates, seaports, dry ports (ICD and CFS), Land Customs
Stations,
airports,
specific
Preventive
Commissionerates
and
zones,
the
17
characteristics which are common in all the preventive setups are discussed as
under:
2.2.1. ESTABLISHMENT:
The founding blocks of the Preventive Department consist of the Superintendents,
Preventive Officers ( in case of seaports) / Inspectors, Group ‗D‘ staffs, Drivers, Boat
/ Motor launch staffs ( in case of seaports / Commissionerates) and the
Communication Staff.
Recruitment to the Group 'D' cadre is either directly through Employment
Exchange and Sports quota etc. or by promotion from the menial staff of Loaders
and Hamals etc., as per the existing recruitment policy.
Similarly, the recruitment to the cadre of Preventive Officers / Inspectors is
through the Staff Selection Commission as well as by promotion from the ministerial
staff such as Tax Assistants, U D Cs and Stenos, as per the rules framed in this
regard.
Recruitment at the level of Superintendent, however, is done entirely by
promotions from the cadre of Preventive Officers / Inspectors. The next promotional
avenue for the Superintendents cadre is the post of Assistant Commissioner. The
Group A officers of the level of Assistant Commissioners and above have a common
cadre of Indian Customs & Excise Services.
2.2.2. SELECTION OF PREVENTIVE OFFICERS:
The success of preventive and intelligence work largely depends on the selection of
the right type of officers as the personal factor invariably plays an important role in
this type of work. The natural aptitude for detection, the knack for collecting
intelligence, the honesty, integrity, initiative and drive of the officers should be
18
carefully examined in making the selection. A list of the officers with a flair for
detection with a high sense of integrity and devotion to duty should be prepared and
from out of this list, selection should be made for the post of preventive officers.
2.2.3. TRAINING
Every preventive officer should be given a proper training after his selection to
enable him to have a sound knowledge of his duties. He must be trained in the
collection
of
information,
compilation
of
intelligence
reports,
conducting
investigations, carrying out searches and raids, making seizures and the various
other duties concerned with his work. Unless his knowledge of the Rules, regulations
and procedures is thorough and up to date, he will lack in both confidence and the
ability to do useful preventive and detection work. He must be made fully aware of
his powers and limitations so that he may not be guilty of excesses and indiscretions.
2.4.
DEPLOYMENTS OF THE PREVENTIVE STAFF
The Preventive staff forms the backbone of the all the anti-smuggling
operations executed by the Commissionerates and other Custom formations.
Besides this, its services are also utilised for general duties like guarding of Customs
stations, escorting of import I export goods from one place to another, boarding of
vessels, patrolling Customs areas, clearance of passengers and baggage,
supervision of loading I unloading of export I import goods, supervision of etc.
Thus the deployment of Preventive staff can broadly be divided into two categories:
a) General duties - where the tasks performed are of Supervisory nature and for
implementation of the Customs Laws and generally performed at sea ports and have
been discussed in the seaports part.
19
b) Special duties - where the tasks executed are of Operative nature and for
detection and prevention of violations of Customs Laws - popularly known as
Preventive or Intelligence Duties which is performed by all preventive setups.
2.5.
RECRUITMENT OF INFORMERS & IDENTIFICATION OF SOURCES
COLLECTION & DEVELOPMENT OF INTELLIGENCE
EXECUTION OF INTELLIGENCE
The basic need of a Preventive set up is to identify the different sources and cultivate
informers providing the intelligence. The intelligence / information obtained from the
said sources is further developed and executed by way of searches / examination or
under summon proceedings. These aspects have been discussed in Chapter 1 of
Volume II.
2.6.
Search Operations:
During the course of Search, the importer / exporter or any other persons
whose premises is to be searched has a right to demand production of Search
Warrant issued by the Dy. Commissioner / Asst. Commissioner of Customs. This
Search Warrant however, will not be given to the importer / exporter, but only shown
to him and his signature is obtained thereon. The importer / exporter can also
demand production of identity cards of the officers who are going to search his
premises. The search will be carried out in the presence of two independent
witnesses and a mahazar / Panchnama will be drawn indicating the proceedings
conducted there, such as recovery of documents and goods if any, listing out the full
details. The copy of the mahazar / Panchnama drawn at the time of search will also
be given to the occupant of the premises. If any person refuses to show the search
warrant or the identity card and still insists on the search of the premises, the matter
may be brought to the notice of Dy. Commissioner / Assistant Commissioner and
20
higher authorities.
2.7.
Issuance of Summons:
Wherever it is necessary to conduct an enquiry in respect of the investigation
in a particular case, the persons connected with the case will be summoned to give
statement / produce documents and records relating to the transactions. Summons
will be issued by an Appraiser / Superintendents or officers of higher rank. Sufficient
time will be given for appearing before the Appraiser / Superintendents or of higher
rank. The proceedings / enquiry under summons shall be deemed to be a judicial
proceedings within the meaning of Sec.193 and Sec.228 of Indian Penal Code
1860. Willful disobedience and non-attendance for the summons will attract penal
provisions as per IPC.
2.8.
PROVISIONAL ASSESSMENT / RELEASE OF GOODS:
In all cases where goods have been seized by the custom officers, the
importer / exporter may take release of the goods provisionally, pending further
investigation and issue of SCN. Except in the case of prohibited goods, the
adjudicating authority will order for provisional release of the goods with sufficient
surety and security in the form of duty deposit / bank guarantee and bond. To avoid
demurrage charges all importers and exporters are advised to take provisional
release of the goods by making a pre-deposit of the differential duty amount and by
furnishing security for probable fine and penalty to be decided by the adjudicating
authority. The duty deposit / bank guarantee will be adjusted in accordance with the
final adjudication order passed by the adjudicating authority.
2.9.
OBTAINING COPIES OF THE SEIZED DOCUMENTS:
In all cases, where documents / records have been seized from the premises
of importer / exporter / CHA, they can take photo copies of the seized documents in
the presence of an authorized officer. Original documents required for investigation
will not be returned to the importer / exporter / CHA until the adjudication
proceedings are completed.
21
2.10. ISSUE OF SHOW CAUSE NOTICE AND ADJUDICATION PROCEEDINGS:
On completion of the investigation, Show Cause Notice will be issued to the
parties concerned asking them to furnish replies to the charges made therein. After
issue of Show Cause Notice, the file will be transferred to the adjudicating
authority. After the submission of replies by the party, the case will be adjudicated
by the adjudicating authority and an order in original will be issued.
2.11. REWARDS TO INFORMERS
Rewards of up to 20% of the duty evaded, redemption fine and penalty
recovered are given to informer who gives specific information to the department
leading to seizure of goods, currency, bullion and incriminating documents to
establish duty evasion in cases of misdeclaration of quantity, value and description
of the goods. In the case of bullion / narcotics, the quantum of rewards depends on
the quantity ant purity. If the information is specific and contains all details, the same
will be recorded by an officer of SIIB and will be kept in a sealed cover after
obtaining the thumb impression of the informer. This will be kept confidential and
opened only at the time of grant of reward by the proper authority, only to establish
the identity of the informer. Information which is general in nature and vague without
specific details will not be acted upon unless an independent verification is carried
out by the department. Any person who wishes to give specific information relating
to under invoicing of imports and over invoicing of exports and any other offences in
violation of Customs Act and EXIM policy may contact the authorized officers of
Customs in person or on given telephone numbers.
2.12. Smuggling & Other Violations and Penal Provisions:
Unscrupulous parties do attempt to evade the duties leviable and bypass
various prohibitions/restrictions in relation to imports by attempting to bring the goods
into the country from places other than the notified ports/airports/Land Custom
Stations without reporting or presenting the goods to customs. Similar attempts are
made to take out goods out of the country unauthorizedly. This is essentially what is
termed ‗smuggling‘ and customs officers have very important role to play in ensuring
that they detect any such attempts of smuggling into or out of the country and take
appropriate action both against the goods as well as against the persons involved in
22
smuggling or violation of various restrictions/prohibitions for personal gains at the
cost of exchequer unmindful of various other harmful effects which the prohibited
and sensitive goods may have, if these are allowed entry into the country. Strict
penalties in relation to the goods/persons – involving seizure/absolute confiscation of
the prohibited goods, fines and penalties on the persons involved in the offence as
well as those abetting the offence are provided. The law also empowers Customs for
carrying out searches, arrests and prosecution of persons involved in smuggling and
serious commercial frauds and evasion of duties or misuse of export incentives by
fraudulent practices (misdeclaration of nature, and value of the goods or suppression
of quantities etc.)
The customs law provides deterrent penal provisions for all such violations but
due processes of law have to be followed before any action is taken against the
offending goods or persons/conveyance etc. involved. The customs officers have to
act as quasi-judicial authorities and the liabilities for duty evaded or sought to be
evaded, fines and penalties etc., are adjudged by adjudication action wherein the
persons concerned are duly given notice of the contemplated action against the
goods/persons/conveyance etc. including the gist of the charges and their basis, and
they are provided opportunity for representation as well as personal hearing. The
adjudication powers are vested in the customs officers of different specified ranks.
In grave offence cases prosecution action with imprisonment upto 7 years is
also permissible under the Customs Act, but this action is to be taken following the
usual criminal proceedings in a court of law, after prosecution sanction has been
given by the competent Customs officer.
2.13. Important provisions of Customs Act, 1962 applicable in day to day work
of Preventive Officers:
2.13.1.
Section 100 - Power to search suspected persons entering or
leaving India, etc. – (1) If the proper officer has reason to believe that any person to
whom this section applies has secreted about his person, any goods liable to
confiscation or any documents relating thereto, he may search that person.
(2)
This section applies to the following persons, namely : –
23
(a)
any person who has landed from or is about to board, or is on board any vessel
within the Indian customs waters;
(b)
any person who has landed from or is about to board, or is on board a foreign-
going aircraft;
(c)
any person who has got out of, or is about to get into, or is in, a vehicle, which
has arrived from, or is to proceed to any place outside India;
(d)
any person not included in clauses (a), (b) or (c) who has entered or is about to
leave India;
(e)
any person in a customs area.
2.13.2.
Section 101 - Power to search suspected persons in certain other
cases. – (1) Without prejudice to the provisions of section 100, if an officer of
customs empowered in this behalf by general or special order of the [Commissioner
of Customs], has reason to believe that any person has secreted about his person
any goods of the description specified in sub-section (2) which are liable to
confiscation, or documents relating thereto, he may search that person.
(2)
The goods referred to in sub-section (1) are the following : –
(a)
gold;
(b)
diamonds;
(c)
manufactures of gold or diamonds;
(d)
watches;
(e)
any other class of goods which the Central Government may, by notification in
the Official Gazette, specify.
2.13.3.
Section 102 - Persons to be searched may require to be taken
before gazetted officer of customs or magistrate. – (1) When any officer of
customs is about to search any person under the provisions of section 100 or section
24
101, the officer of customs shall, if such person so requires, take him without
unnecessary delay to the nearest gazetted officer of customs or magistrate.
(2)
If such requisition is made, the officer of customs may detain the person making
it until he can bring him before the gazetted officer of customs or the magistrate.
(3)
The gazetted officer of customs or the magistrate before whom any such
person is brought shall, if he sees no reasonable ground for search, forthwith
discharge the person but otherwise shall direct that search be made.
(4)
Before making a search under the provisions of section 100 or section 101, the
officer of customs shall call upon two or more persons to attend and witness the
search and may issue an order in writing to them or any of them so to do; and the
search shall be made in the presence of such persons and a list of all things seized
in the course of such search shall be prepared by such officer or other person and
signed by such witnesses.
(5)
No female shall be searched by any one excepting a female.
2.13.4.
Section 103 -
Power to screen or X-ray bodies of suspected
persons for detecting secreted goods. – (1) Where the proper officer has reason
to believe that any person referred to in sub-section (2) of section 100 has any goods
liable to confiscation secreted inside his body, he may detain such person and
produce him without unnecessary delay before the nearest magistrate.
(2)
A magistrate before whom any person is brought under sub-section (1) shall, if
he sees no reasonable ground for believing that such person has any such goods
secreted inside his body, forthwith discharge such person.
(3)
Where any such magistrate has reasonable ground for believing that such
person has any such goods secreted inside his body and the magistrate is satisfied
that for the purpose of discovering such goods it is necessary to have the body of
such person screened or X-rayed, he may make an order to that effect.
25
(4)
Where a magistrate has made any order under sub-section (3), in relation to
any person, the proper officer shall, as soon as practicable, take such person before
a radiologist possessing qualifications recognized by the Central Government for the
purpose of this section, and such person shall allow the radiologist to screen or X-ray
his body.
(5)
A radiologist before whom any person is brought under sub-section (4) shall,
after screening or X-raying the body of such person, forward his report, together with
any X-ray pictures taken by him, to the magistrate without unnecessary delay.
(6)
Where on receipt of a report from a radiologist under sub-section (5) or
otherwise, the magistrate is satisfied that any person has any goods liable to
confiscation secreted inside his body, he may direct that suitable action for bringing
out such goods be taken on the advice and under the supervision of a registered
medical practitioner and such person shall be bound to comply with such direction :
Provided that in the case of a female no such action shall be taken except on the
advice and under the supervision of a female registered medical practitioner.
(7)
Where any person is brought before a magistrate under this section, such
magistrate may for the purpose of enforcing the provisions of this section order such
person to be kept in such custody and for such period as he may direct.
(8)
Nothing in this section shall apply to any person referred to in sub-section (1),
who admits that goods liable to confiscation are secreted inside his body, and who
voluntarily submits himself for suitable action being taken for bringing out such
goods.
Explanation. - For the purposes of this section, the expression ―registered medical
practitioner‖ means any person who holds a qualification granted by an authority
specified in the Schedule to the Indian Medical Degrees Act, 1916 (7 of 1916), or
notified under section 3 of that Act, or by an authority specified in any of the
Schedules to the Indian Medical Council Act, 1956 (102 of 1956).
2.13.5.
Section 104 - Power to arrest. –
[(1) If an officer of Customs
empowered in this behalf by general or special order of the Commissioner of
26
Customs has reason to believe that any person in India or within the Indian customs
waters has committed an offence punishable under section 132 or section 133 or
section 135 or section 135A or section 136, he may arrest such person and shall, as
soon as may be, inform him of the grounds for such arrest.]
(2)
Every person arrested under sub-section (1) shall, without unnecessary delay,
be taken to a magistrate.
(3)
Where an officer of customs has arrested any person under sub-section (1), he
shall, for the purpose of releasing such person on bail or otherwise, have the same
powers and be subject to the same provisions as the officer-in-charge of a policestation has and is subject to under the Code of Criminal Procedure, 1898 (5 of
1898).
(4)
Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5
of 1898), an offence under this Act shall not be cognizable.
2.13.6.
Section 105 -
Power to search premises. – (1) If the [Assistant
Commissioner of Customs or Deputy Commissioner of Customs], or in any area
adjoining the land frontier or the coast of India an officer of customs specially
empowered by name in this behalf by the Board, has reason to believe that any
goods liable to confiscation, or any documents or things which in his opinion will be
useful for or relevant to any proceeding under this Act, are secreted in any place, he
may authorise any officer of customs to search or may himself search for such
goods, documents or things.
(2)
The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), relating to
searches shall, so far as may be, apply to searches under this section subject to the
modification that sub-section (5) of section 165 of the said Code shall have effect as
if for the word ―Magistrate‖, wherever it occurs, the words [Commissioner of
Customs] were substituted.
2.13.7.
Section 106 -
Power to stop and search conveyances. –
(1)
Where the proper officer has reason to believe that any aircraft, vehicle or animal in
India or any vessel in India or within the Indian customs waters has been, is being, or
27
is about to be, used in the smuggling of any goods or in the carriage of any goods
which have been smuggled, he may at any time stop any such vehicle, animal or
vessel or, in the case of an aircraft, compel it to land, and (a)
rummage and search any part of the aircraft, vehicle or vessel;
(b)
examine and search any goods in the aircraft, vehicle or vessel or on the
animal;
(c)
break open the lock of any door or package for exercising the powers conferred
by clauses (a) and (b), if the keys are withheld.
(2)
Where for the purposes of sub-section (1) -
(a)
it becomes necessary to stop any vessel or compel any aircraft to land, it shall
be lawful for any vessel or aircraft in the service of the Government while flying her
proper flag and any authority authorised in this behalf by the Central Government to
summon such vessel to stop or the aircraft to land, by means of an international
signal, code or other recognized means, and thereupon, such vessel shall forthwith
stop or such aircraft shall forthwith land; and if it fails to do so, chase may be given
thereto by any vessel or aircraft as aforesaid and if after a gun is fired as a signal the
vessel fails to stop or the aircraft fails to land, it may be fired upon;
(b)
it becomes necessary to stop any vehicle or animal, the proper officer may use
all lawful means for stopping it, and where such means fail, the vehicle or animal
may be fired upon.
2.13.8.
Section 106A - Power to inspect. – Any proper officer authorised in
this behalf by the [Commissioner of Customs] may, for the purpose of ascertaining
whether or not the requirements of this Act have been complied with, at any
reasonable time, enter any place intimated under Chapter IVA or Chapter IVB, as the
case may be, and inspect the goods kept or stored therein and require any person
found therein, who is for the time being in charge thereof, to produce to him for his
inspection the accounts maintained under the said Chapter IVA or Chapter IVB, as
the case may be, and to furnish to him such other information as he may reasonably
28
require for the purpose of ascertaining whether or not such goods have been illegally
imported, exported or are likely to be illegally exported.]
2.13.9.
Section 107 - Power to examine persons. – Any officer of customs
empowered in this behalf by general or special order of the [Commissioner of
Customs] may, during the course of any enquiry in connection with the smuggling of
any goods, (a)
require any person to produce or deliver any document or thing relevant to the
enquiry ;
(b)
examine any person acquainted with the facts and circumstances of the case.
2.13.10.
Section 108 - Power to summon persons to give evidence and
produce documents. –
(1) Any Gazetted officer of Customs [* * *] shall have
power to summon any person whose attendance he considers necessary either to
give evidence or to produce a document or any other thing in any inquiry which such
officer is making under this Act.
(2)
A summons to produce documents or other things may be for the production of
certain specified documents or things or for the production of all documents or things
of a certain description in the possession or under the control of the person
summoned.
(3)
All persons so summoned shall be bound to attend either in person or by an
authorised agent, as such officer may direct; and all persons so summoned shall be
bound to state the truth upon any subject respecting which they are examined or
make statements and produce such documents and other things as may be required
Provided that the exemption under section 132 of the Code of Civil Procedure, 1908 (5
of 1908), shall be applicable to any requisition for attendance under this section.
(4)
Every such inquiry as aforesaid shall be deemed to be a judicial proceeding
within the meaning of section 193 and section 228 of the Indian Penal Code, 1860
(45 of 1860).
29
2.13.11.
Section 109 - Power to require production of order permitting
clearance of goods imported by land. – Any officer of customs appointed for any
area adjoining the land frontier of India and empowered in this behalf by general or
special order of the Board, may require any person in possession of any goods
which such officer has reason to believe to have been imported into India by land, to
produce the order made under section 47 permitting clearance of the goods :
Provided that nothing in this section shall apply to any imported goods passing from
a land frontier to a land customs station by a route appointed under clause (c) of
section 7.
2.13.12.
Section 110 - Seizure of goods, documents and things. – (1) If the
proper officer has reason to believe that any goods are liable to confiscation under
this Act, he may seize such goods :
Provided that where it is not practicable to seize any such goods, the proper officer
may serve on the owner of the goods an order that he shall not remove, part with, or
otherwise deal with the goods except with the previous permission of such officer.
[(1A)
The Central Government may, having regard to the perishable or hazardous
nature of any goods, depreciation in the value of the goods with the passage of time,
constraints of storage space for the goods or any other relevant considerations, by
notification in the Official Gazette, specify the goods or class of goods which shall, as
soon as may be after its seizure under sub-section (1), be disposed of by the proper
officer in such manner as the Central Government may, from time to time, determine
after following the procedure hereinafter specified.
(1B)
Where any goods, being goods specified under sub-section (1A), have been
seized by a proper officer under sub-section (1), he shall prepare an inventory of
such goods containing such details relating to their description, quality, quantity,
mark, numbers, country of origin and other particulars as the proper officer may
consider relevant to the identity of the goods in any proceedings under this Act and
shall make an application to a Magistrate for the purpose of (a)
certifying the correctness of the inventory so prepared; or
30
(b)
taking, in the presence of the Magistrate, photographs of such goods, and
certifying such photographs as true; or
(c)
allowing to draw representative samples of such goods, in the presence of the
Magistrate, and certifying the correctness of any list of samples so drawn.
(1C) Where an application is made under sub-section (1B), the Magistrate shall, as
soon as may be, allow the application.]
(2)
Where any goods are seized under sub-section (1) and no notice in respect
thereof is given under clause (a) of section 124 within six months of the seizure of
the goods, the goods shall be returned to the person from whose possession they
were seized :
Provided that the aforesaid period of six months may, on sufficient cause being
shown, be extended by the Commissioner of Customs for a period not exceeding six
months.
(3)
The proper officer may seize any documents or things which, in his opinion,
will be useful for, or relevant to, any proceeding under this Act.
(4)
The person from whose custody any documents are seized under sub-section
(3) shall be entitled to make copies thereof or take extracts therefrom in the
presence of an officer of customs.
2.13.13.
Section 110A - Provisional release of goods, documents and
things seized pending adjudication. -
Any goods, documents or things seized
under section 110, may, pending the order of the adjudicating officer, be released to
the owner on taking a bond from him in the proper form with such security and
conditions as the Commissioner of Customs may require.
2.14. Guidelines to be followed while arresting a person:
The Hon‘ble Supreme Court of India in their judgment dated 18.12.1996 in the
case of Shri D..K. Basu v. State of West Bengal in W.P. (CRL) No. 539 of 1986 with
W.P. (CEL) 592 of 1987 in the case of Ashok K. Johri v. State of U.O [JT `997 (1)
31
S.C.1] stipulated the following requirements to be observed by the officers of the
Customs & Central Excise and DRI in all cases of arrest/detention.
(i)
The personnel carrying out the arrest and handling the interrogation of the
arrestee should bear accurate, visible and clear identification and name
tags with their designations.
(ii)
The officer carrying out the arrest should prepare a memo of arrest at the
time of arrest and such memo shall be attested by at least one witness,
who may be either a member of the family of the arrestee or a respectable
person of the locality from where arrest is made. The memo should also
be countersigned by the arrestee and shall contain the date/time of arrest.
(iii)
A person who has been arrested or detained, shall be entitled to have one
friend or relative or other person known to him or having interest in his
welfare being informed, as soon as practicable, unless the attesting
witness of the memo of arrest is himself a friend or a relative of the arrest.
(iv)
The time, place of arrest an venue of custody of arrestee must be notified,
where the next friend or relative of arrestee lives outside the district or
town, through the Legal Aid Organization in the District and the Police
Station of the area concerned telegraphically within a period of 8 to 12
hours after the arrest.
(v)
The person arrested must be made aware of this right to have someone
informed of his arrest or detention as soon as he is put under arrest or is
detained.
(vi)
An entry must be made in the diary, at the place of detention regarding the
arrest of the person which shall also disclose the name of the next friend
of the person who has been informed of the arrest and the names and
particulars of the officials in whose custody the arrestee is.
(vii)
The arrestee should, where he so requests, be also examined at the time
of his arrest and major and minor injuries, if any present on his/her body,
must be recorded at that time. The ―Inspection Memo‖. Must be signed
both by the arrestee and the officer effecting the arrest and its copy
provided to the arrestee.
(viii)
The arrestee should be subjected to medical examination by a trained
doctor every 48 hours of his detention in custody by a doctor on the panel
32
of approved doctors appointed by the Director of Health Services of the
concerned State or Union Territory.
(ix)
Copies of all the documents including the memo of arrest, referred to
above, should be sent to the ‗illaqa‘ Magistrate for his record.
(x)
The arrestee may be permitted to meet his lawyer during interrogation,
though not throughout the interrogation.
2.15. PREVENTIVE SETUP AT DIFFERENT CUSTOM FORMATIONS
2.15.1.
Inland Container Depot (ICD)/ Container Freight Station (CFS) -
The preventive set up of ICD/ CFS is known as Special Intelligence and
Investigation branch (SIIB).
The Special Intelligence and Investigation Branch is a Branch in the Custom
House dealing with the gathering of intelligence and investigation of cases
detected. The cases of under valuation of imports and over invoicing of exports and
imports and exports in violation of the EXIM Policy are investigated by the Special
Intelligence and Investigation Branch.
ORGANIZATIONAL STRUCTURE:
Special Intelligence and Investigation Branch is headed by a Dy.
Commissioner / Assistant Commissioner with required nos. of
Appraisers /
Superintendents, Examiners / Inspectors and necessary ministerial staff under the
overall supervision of Additional Commissioner of Customs / Joint Commissioner of
Customs..
FUNCTIONS OF SIIB:
Special Intelligence and Investigation Branch deals with gathering of
intelligence and investigation of cases. For this purpose, informers are cultivated to
gather intelligence. Any information given by an informer will be kept confidential
and necessary action will be initiated based on the information. However, the
information has to be specific and accurate to take immediate action. In case of
general and vague information, the cases will not be taken up unless a primary
33
verification of the information received is carried out. As part of the investigation,
SIIB carries out search and seizure operations and arrest of persons involved in
serious offences. Search of commercial / residential premises are carried out by the
officers of SIIB under an authorisation of search issued by the Dy. Commissioner of
Customs (SIIB). In case of prima facie evidence of offence, the goods involved are
seized. In case of serious offences, the persons who are directly connected with the
offence will be arrested after obtaining the permission from superior officers. SIIB
also takes up value verifications in respect of suspected under invoicing of imports
and follow up actions in respect of cases detected at other Custom Houses. After
the completion of investigation, a Show Cause Notice is issued to the importer. In
addition to these works SIIB also carries out following works:
i)
Maintaining Coordination with CONCOR & CISF on behalf of
Customs
ii)
Reconciliation of Receipt & Dispatch of Consignment/Container(s)
iii)
Monitoring all Consignments/containers where the seal integrity is
violated.
iv)
v)
Obtaining necessary information in the said context from
-
CONCOR
-
And all Gateway Port(s)
-
On a regular/real time basis
Coordinating with Shipping Line(s) for obtaining necessary claim(s)
related information
vi)
Monitoring the entry and exit of
-
Truck/Containers
-
Labor, CHA and Visitors
With respect to un-authorised ingress and movement in the
Restricted Area(s)
-
Through surprise check(s)
-
Review of the passes issued by CONCOR
-
Gate Record(s)
-
Reviewing all shut out/con-dispatched export cargoes vis-à-vis
LEO
34
2.15.2.
-
Patrolling and Preventive vigilance of the Customs Area of (CI)
-
All miscellaneous work assigned from time to time.
Commissionerates of Customs (Preventive)
There are 93 Central Excise & Customs Commissionerates spread across the
country. These Commissionerates perform executive functions entrusted by the
Board,
predominantly
concerning
central
excise
duty.
Some
of
these
Commissionerates also deal with customs and anti-smuggling work in their
respective jurisdictions.
There are 35 Commissionerates exclusively of Customs and Customs (preventive)
spread all over the country. These Commissionerates have been assigned following
functions :
(a) Implementation of the provisions of the Customs Act, 1962 and the allied acts,
which includes levy and collection of customs duties and enforcement functions in
their earmarked jurisdiction.
(b)
Surveillance of coastal and land borders to prevent smuggling activities. Marine
and telecommunications wings and available with the Board to assist these
Commissionerates in their anti-smuggling work and surveillance of sensitive
coastline.
Groups like City Preventive, ICD, Air Cargo, Air Intelligence, General headed by Dy.
Commissioners / Assistant Commissioners who are assisted by suitable nos. of
Superintendents
/
Inspectors,
work
Commissioners / Joint Commissioners
under
the
supervision
of
Additional
under the overall supervision of
Commissioner. The nature of work performed by them has already been discussed
in foregoing paras.
35
The preventive staff of the customs also keeps a very careful vigil in the port areas
for checking any illegal activities and develops intelligence to guard against any
possible attempts of unauthorized removals from the docks and unloading of unmanifested cargo etc.
2.15.3.
Land Customs Stations (LCS):
Land Customs Stations are opened on the important land borders of adjoining
countries from where adequate quantum of trade is expected and there is good
connectivity. India is connected by Road with Pakistan, Bangladesh, Myanmar,
Nepal, Bhutan and China. Trade with these countries is regulated by the trade treaty
with the respective countries. Therefore, officers posted there should be well
conversant of the said treaties. These LCS are headed by the Deputy
Commissioners / Assistant Commissioner and assisted by required no. of
Superintendents/ Inspectors, Sepoys and ministerial staffs. Small LCS are headed
by Superintendents and assisted by Inspectors and sepoys. Larger LCSs are also
having there preventive setups headed by Superintendents and assisted by required
nos. of Inspectors and sepoys under the overall supervision of the AC / DC incharge
of the respective LCS. These land borders are very sensitive in view of smuggling of
food grains, Narcotics, Arms and weapons, explosive, ODS etc. Therefore, the
preventive officers should be well acquainted with allied acts and rules thereof. The
preventive officers are also responsible for the CARNATE system i.e. entry of foreign
vehicles with valid documents.
2.15.4.
International Airports
The Air Customs comprises of different sections viz. Baggage,, Technical,
Administration, Unaccompanied baggage, Disposal, COFEPOSA and Preventive.
The preventive setup is commonly known as Air Intelligence Unit which takes care to
prevent smuggling activities, commercial frauds, including trade of narcotics. These
AIUs are headed by Dy. Commissioner / Assistant Commissioner with suitable nos.
of Superintendents, Inspectors and sepoys. They should have thorough knowledge
of scanning and rummaging of aircrafts.
2.15.5.
SEAPORTS:
36
( a) General duties
The broad spectrum of areas where the Preventive Staff may be deployed for
performing duties of general nature is briefly outlined below
(i) Offices - in Personnel & Establishment section, Vigilance section, Maintenance
section, Preventive and Group 'D' service sections, sports & training sections, P R
section, outstanding dues recovery section, etc., for assisting the superiors in
maintaining general administration and for carrying out other tasks in the
Commissionerate.
(ii) Docks - the docks are enclosed and guarded areas normally utilised as berthing
places of ships I vessels for loading, unloading and storage of export I import goods.
The dock is generally divided into Divisions which are sub-divided into Sections for
the purpose of better supervision and control of Customs work by the Customs staff.
Further, customs Boarding Offices are also situated inside the docks which monitor
the arrival and departure of vessels and ships. Also, there are some places out of the
docks limits which are used for stuffing I destuffing of the export I import cargo.
2.16. Periodical Shifts of the Preventive Staff
Like any other law-enforcing department, the Preventive service has to
perform diversified tasks in enforcing the statutes in force. In the process, at times it
comes across many situations and cases which are unique and dealt with in
particular manner. As the deployments are varied in terms of nature and place of
work, so are the actions taken and experiences gained. The same can be utilized for
similar situations at other places of deployment gainfully.
37
In order to give maximum exposure to the widespread Customs work and to
utilise the experience so gained optimally, the Preventive staff is shuffled periodically
among the aforesaid Sections / formations. The frequency of rotation, tenure of the
staff in a particular deployment, distribution of the charges, etc., are stipulated by the
cadre controlling Commissioner.
Other aspect of the periodical shift is to discourage any unhealthy
acquaintance and mixing up of the bad elements with the staff at a given formation
which may lead to any kind of nexus or connivance.
In some Commissionerates, the set-up, sanctioned strength of staff and
functions of certain Sections have been specified by the Ministry / Board. However,
depending upon the requirements, the concerned Commissioners may use their
discretion for creating new Sections and restructuring the existing ones.
2.17. Prescribed Working Hours
At present it has been stipulated that the Preventive staff shall render services
8 hours per day on all days except on Sundays and holidays. Preventive staff is
entitled to receive Overtime allowance for the service rendered beyond prescribed
working hours or on Sundays and holidays. The Heads of Department have full
discretion to prescribe working hours for a particular formation and to adjust the shift
timings of the staff working under them subject to the condition that the staffs
concerned gives an effective service of 8 hours per day. But in order that the staffs
are not put to any inconvenience, every effort should be made to adjust the shift
timings in such a manner that the staffs are not relieved at night after 12 midnight.
2.18. Deployment beyond working hours
38
The movement of people and goods through the land, sea and air routes
continues round the clock. With that, the Customs functions have also to be
executed by the Customs staff day in and day out. More so is the case with the
Preventive staff who have also to attend to anti-smuggling duties. This entails
posting of the Preventive staff beyond normal working hours and on Sundays and
holidays.
Section 36 of the Customs Act stipulates that no loading I unloading of export I
import cargo shall take place on Sundays I holidays and on any other day beyond
normal working hours except after giving the prescribed notice and on payment of
prescribed fees with the exception of baggage accompanying a passenger or a
member of crew, and mail bags. Vide notification no. 4-Cus., dated 21.01.1950,
issued by the Board under section 72 of the erstwhile Sea Customs Act, the hours
between 6 a.m. and 6 p.m. has been appointed for all Customs ports to be the hours
between which goods other than passenger's baggage may be discharged from any
vessel or be shipped or water borne to be shipped without written permission of the
Customs Commissioner.
Further, there are many other works related to the clearance of import I export cargo
which require Preventive supervision during as well as beyond the normal working
hours.
2.19. MERCHANT OVERTIME FEES
As discussed earlier, the services of the Preventive staff can be requisitioned
by the trade beyond normal working hours, on Sundays and holidays and also at a
place away from the normal place of work, on payment of prescribed fees.
39
The rates and other aspects of Merchant Overtime postings of the Preventive
Staff have been discussed in Chapter Four of this Manual.
2.20. Overtime Allowance to the Preventive Staff
The Preventive staff rendering services beyond normal working hours of duty and
also on Sundays and holidays are entitled to receive Overtime Allowance as per the
guidelines issued by the Government. The staff, in this regard is entitled to claim the
Government Overtime as well as Merchant overtime. The criteria for admissibility,
rates per hour, night weight-age, ceiling on O T A etc., issued by the Govt. from time
to time, are enumerated in the' Miscellaneous' Chapter of this Manual.
2.21. FUNCTIONS & DUTIES OF THE PREVENTIVE STAFF
The duties of the Preventive Staff in relation to a particular formation have
been described in the respective Chapters, the duties of a few Preventive
Superintendents and Preventive Officers have been described below:
2.21.1.
(1) Superintendent (Preventive)
For effective control over the working of the Preventive Service, a
Superintendent (Preventive) is generally posted in every Customs House to assist
the Assistant Commissioner of Customs, incharge of Preventive Department for
posting of the Preventive Staff and distribution of overtime work at night and on
Holidays.
He generally attends to:
40
(a) Posting and attendance register of the floating staff.
(b) Distribution of O.T. Work to the staff every day out of officer hours, and on
Sundays and Holidays.
(c) Posting of Preventive staff for examination of passengers' baggage and of crew
baggage.
(d) Posting of Preventive staff for supervising ships in streams, break bulk of
hazardous cargo, guard and bandobast duties.
(e) To assist divisional Superintendents in various Divisions.
(f) Posting of Officers for escorting/receiving/delivery of bonded goods in the
docks/private bonded warehouses etc.
(g) To depute staff as and when required according to the exigency of work.
(h) Posting of the floating staff in the docks, dock gates on rotation basis.
(i)
To attend to the work of correspondence with steamer agents, shipping agents,
ship chandlers, Port Trust Authorities regarding the preventive matters of Customs
as and when required.
41
0) Posting of officers in shifts at various places and points according to the tenure of
the posts.
(k) To assist Asstt../ Dy. Commissioner (Preventive) is framing and implementing
policies regarding Preventive Deptt.
2.21.2.
(2) Superintendent (Preventive)/Administration
Besides Supdt (Preventive), there is another important posting, that of Supdt.
(Preventive)/Administration, who assists Asstt./Dy. Commissioner (Preventive)
(General) in running day to day administration and in dealing with policy matters
related to administration of the Preventive service. The main functions of Supdt.
Preventive/Administration are :
(a)
(b)
Matters pertaining to administration of Preventive Service.
Integration of policy matters, laws, regulations, etc., in terms of their application
in day-to-day work.
(c)
Issuance of Public Notices regarding policy matters like notification of
Warehousing Stations, Customs Areas, etc., under the Customs Act, 1962.
(d)
Updating of Preventive Manual - Compilation of orders.
(e)
Statistical statements in respect of all preventive work.
42
(f)
Control over the ministerial work involved in Preventive section, pay bill
section etc. in the preventive Service (Main) Department.
(g)
During the absence of Posting Superintendent, Supdt. Administration has to
attend his duties in addition to his usual functions.
(h)
Attending to correspondence from trade regarding matters pertaining to
Preventive Deptt., its functions & jurisdiction.
(i)
Any other work assigned by AC/DC (Preventive).
2.21.3.
Escorting of Dutiable Goods bv Preventive Officers- Instructions
[Circular No. 170/16.07.1977 issued by Asst. Collector, Preventive (General),
Mumbai in F .NO. S/43-1582/77P]
The following instructions are issued for the guidance of Preventive Officers
deputed for escorting jobs:
(1) The Preventive Officers should acquaint themselves with the provisions of
Customs Act, 1962 and instructions given in the Preventive Service Manual and
Bond Department Manual on the subject.
(2) Before the escorting job is taken in hand by the Preventive Officer, he should
ensure that the documents produced by the party, i.e. Into Bond Bill of Entry,
Shipping Bill, Transhipment Permit, Transfer application or any other document - are
completed by the concerned, department of the Custom House.
43
(3) Before starting the job, it should be ensured that description, marks and numbers
etc. given in the document tally with the goods to be escorted by him. He should also
see that the packages are in sound condition and in case they are sealed as per
document, he should check up whether the seals are in tact.
(4) At the time of escort the Preventive Officers should as far as possible see that a
closed vehicle is made available by the party especially in case of sensitive goods. If
closed vehicle is not available, the goods like Cigarette, Whisky, Films, etc. should
be covered by tarpaulin to avoid public attention.
(5) The Preventive Officers will as far as possible sit in the vehicle in which the
goods are kept unless it is against traffic regulations. In case it is not possible to sit in
the vehicle, the Preventive Officer should follow closely the vehicle in another
conveyance. However, under no circumstances the vehicle containing the goods
should be lost sight off.
(6) On reaching the place (bond) where the goods are to be stored it should be seen
that the necessary entries are made into the Bond Register and receipt from the
bonder is obtained on the duplicate copy of the B/E as well as the OT. application
form in token of completion of the job.
The Preventive Officer will also see that the packages are properly stacked in
the Bond keeping space between the two rows and a 'Stack Card' giving particulars
of B/E, Bond No. etc. is placed on the lot.
If it is observed that the goods are not stored properly and no stack cards are
maintained by the Bonders, a report in this regard should be submitted to Asst.
Commissioner, Bond through Supdt, Bond.
44
(7) In the case of ex-bond supplies of liquor, cigarettes etc. the Preventive Officer
should ensure that the packages are marked with the name of the ship on which the
bonded goods are being supplied and also with the bonders particulars. The ex-bond
supplies are to be entered in the register kept for this purpose in the Section Office
and the Preventive Officer should as far as possible take the Section Officer along
with him at the time of actual shipment, who will place the goods in the Bonded
Locker of the ship and seal the locker. In case the section officer is not available, the
Preventive Officer escorting the goods should keep the goods in a separate
room/cabin and seal the place. Under no circumstances the bonded goods should be
left unsealed on board the vessel.
(8) In case of transhipment cargo the P.O. should enter the particulars of the T.P.
cargo in the register maintained for the purpose by the B.P.T. at the gate.
(9) In case of 're-shipment cargo after endorsing the relevant documents, i.e. file,
B/E, Shipping Bill etc. the P.O. will enter the papers in the Register maintained for
the purpose in the Section Office.
(10) When goods are being sent in Bond to other Commissionerates, the P.O.
should ensure that the Railway Receipt, Roadway Bill or Air consignment note is
made in the name of the concerned Collector and not in the name of the party. The
R.R., Road-way bill, Air consignment Note should be brought to the Custom House
and handed over to Superintendent in-charge of Postings, who should sent it under
despatch to the concerned section.
(11) After completion of the job, the P.O. should report to the Posting Section and
not to waste his time anywhere else. In case the Custom House is closed, he should
keep the Bond keys at prescribed Station. The entire job should be done in proper
45
uniform.
2.21.4.
Conveyance Allowance for services rendered to the Trade:
It is incumbent on the party requisitioning the services of a Preventive staff
for escorting jobs to provide them with motor-transport to-and-fro or pay the
conveyance charges in Custom House at the time of requisition.
In view of the above the preventive staffs posted for the jobs are hereby
informed that they should not receive any cash from the parties in lieu of
conveyance.
The preventive staff can claim the conveyance allowance in case transport is
not provided by the party from the Custom House as per the instructions enclosed
"[(4) Transport charges to officers for journeys from Custom House to bonded
factories or warehouses and back. - It has been decided by the Government of India
that shipping agents or merchants who apply for the services of the Custom Officer
for work in private bonded warehouse or for escorting dutiable cargo from bonded
factories or warehouses to the ships and vice-versa provide conveyance free of
charge. Staff are despatched on duty to places at some distances from the Custom
House concerned. It is considered equitable to allow them to draw the actual cost of
conveyance charge. The President is, therefore, pleased to decide that officers both
gazetted and nongazetted should be granted the conveyance allowance in respect of
their journeys from Custom House to bonded factories, warehouses etc. and back
subject to the following conditions:
(1) The amount claimed should within the schedule scale of charges fixed by
the
46
local authorities.
(2) No free conveyance was provided by the bonder nor so any conveyance hire
drawn by the Government servant directly from bonders (a certificate to this effect
should be furnished by the Government Servant along with the claim).
(3) The journey was not performed in the Government Servant's own conveyance or
in conveyance of another person without payment of its usual expenses.
(4) Payment of conveyance hire to the officers will not affect their
entitlement
of
overtime even if otherwise admissible to them.
(5) The Government Servant drawing the conveyance hire under these orders will
not be entitled to any T. A. under the rules in force. (2) The expenditure involved
should be debited to contingency in the case of non-gazetted separate and the
allowance and travelling allowance in the case of gazetted officers. The amount of
expenditure should, therefore, be recovered from the bonders etc. and credited as
Customs miscellaneous vide M. F. D. B. No. 12/45/56 Adm. III, dated the 5t Dec.,
1957.
Casual work - The persons requesting for posting of officers should give
on the overtime application one of the following declarations:
"We shall provide motor transport to the Officer" or "We shall pay the taxi
charges" .
In the latter case the money should be paid along with the application for overtime to
the Custom House and not to the Officer who may be posted. The Officer concerned
should claim the conveyance charges from the Government."
2.21.5.
(3) DUTIES OF SEPOYS AND HAVALDARS
1. In supersession of this Department's letter F. No. 11019/31/89-Ad. IV dt.27.12.89 on
47
the above subject, of this is to say that the matter regarding nature of duties of
Sepoys/Havaldars, as raised by the staff -side member representing them in the
Departmental Council of this Ministry has been reconsidered by the Board. Duties of
Sepoys/Havaldars are well understood. Sepoys/Havaldars attached to an officer are
required to assist them in their work and also perform duties which are incidental to
the official work of the officers.
2. In this connection, it may be observed that Sepoy and Havaldars of these
Departments are deployed in the office to perform duties as exigencies demand and
also in the field formations to assist executive officers in carrying out their functions.
In performance of these functions, they are required to act under and in accordance
with the orders of such executive officers. The duties of such executive officers are
of multifarious nature.
3. In the Customs field formations, the duties of such executive officers (in performance
of which Sepoy/Havaldars assist them) are: check of import/export cargo in
docks/Air-cargo sheds, check of baggage of outgoing/in-coming passengers at
airport/ports, guarding of entry/exit points at Airports, docks and warehouses,
rummaging etc. of vessels, guarding of goods in custom custody, escorting of seized
goods and detained persons, raids and surveillance duties etc.
4. In the Central Excise field formations, the duties of such executive officers are: stockverification in factories, warehouses, etc. road-checks, escorting of seized goods and
detained persons, raids and surveillance duties, etc.
5. Likewise, in the field formations of the Central Bureau of Narcotics, they are required
to assist the executive officers in their functions like issue of licence for poppy
cultivation, crop survey, weighment and collection of opium, escorting of opium
consignments, road-checks, escorting of detained persons, road-surveillance duties
etc.
6. It may, however, be mentioned that as in the case of other officers, Sepoys/Havaldars
are also required to attend to such other duties as may be assigned to them by their
higher officers.
7. The Havaldars besides supervising the work of Sepoys will, where required, also
attend to the work of Sepoys.
48
8. Annexure I & II give illustrative lists of duties of such officers of the Customs,
Central Excise and Narcotics Departments.
Annexure I
2.21.5.2.
Illustrative list of Duties of Sepov/Hawaldar in the Customs & Central
Excise Departments
Some illustrations of specific items of duties which are generally performed by
Sepoys/Hawaldar in the customs Department are indicated below:
(i) Guarding of Exit Gate etc. at Customs' Stations :
Sepoys have to guard entry/exit gates at Airports, docks, bunders and other checkpoints at Customs Stations to check passengers/vehicles to ensure that only
authorised goods are allowed. Similarly, they have to guard detaine9 conveyances
and persons suspected to have committed offences under the Customs Law.
(ii) Arms duties :
(a) Guarding: Sepoys have to carry out armed guard duties in Warehousing where
detained/confiscated goods are stored.
(b) Patrolling:
Sepoys carry out patrolling, keeping watch over in coming and out-
going passengers, intelligence gathering, etc. in the vulnerable towns docks/sea
areas as part of anti-smuggling exercises under the supervision of Customs Officers.
(c) Escort duty:
Sepoys have to perform escort duty in respect of seized /
confiscated or other goods moving from one Customs station to another pending
clearance thereof from Customs and/or lodging of the same at the destination in
proper condition.
49
(iii)
Customs seal duty: Sepoys put seals on goods to be forwarded from
one Customs Station to another Customs Station (where escort is not possible). (iv)
Search: Sepoys accompany and assist the Customs Officers in carrying out search
of suspected premises/persons, and in rummaging duties.
(v)
Indoor duties: To attend to the Customs Officers, receipt and dispatch
work, carrying files from one Department to another and generally to perform duties
as are required to be performed in the office.
2. The above illustrations apply, mutatis mutandis, to sepoys working in the Central
Excise Departments.
2.21.5.3.
Duties of Sepoys of Narcotics Department
Assisting Executive Officers in regulation of poppy cultivation, e.g. measuring
of fields, weighment and collection of yields, etc. On the preventive side assist the
Preventive Officer in gathering intelligence, trailing the suspects, conducting roadblocks, participating in raids, preventing trafficking in opium/smuggling, etc.
[M. F., D.R., letters F. No. 8-12014/6/90 - Ad IV dated 15.3.1991 and dated
19. 8.1992]
2.21.5.4.
Escorting by Sepoys of Lorries carrying dutiable goods
In this connection, it is informed that as per the prevailing practice and the
rules, a Sepoy has to escort one lorry only. But if there is a convoy of trucks, a
Sepoy is permitted to escort maximum three lorries at a time, provided the three
lorries go together.
[Excerpts from letter F. No. S/43 - 157/94 P, of Assistant Commissioner (Preventive
Deptt.), New Custom House, Mumbai]
50
2.22. All Preventive Officers should be well aware about the designated proper
officers under important sections of Customs Act, 1962 as detailed under:
Sections
Purpose in brief
Proper Officer
Appointment of Customs port and
Central ‗Government
under
Customs
Act, 1962
7
Airport
8
9
Approve landing places and specify
Commissioner of Customs and Central
limits if Customs Area
Excise
Declare places to be warehousing
CBE&C
Stations
10
Appointment of Boarding Stations
Commissioner of Customs and Central
Excise
14(b)
Valuation Rules
Assistant
Commissioner
/
Deputy
Commissioner
17(1)
Examination Test
Superintendent / Appraisers, Chemical
Examiner and Asstt.Chemical Examiner
17(3)
Power to call for documents for the
purpose of assessing duty under
Sec.17(2)
Superintendent /Appraisers
51
17(4)
Accepting
assessment
declaration
prior
to
for
Superintendent /Appraisers
the
examination
18
Provisional Assessment
Deputy./ Asst.Commissioner
19
Proviso (a)-Rules
Dy./Asst.Commissioner
21
Proviso (b)-Acceptance of value for
Superintendent /Appraisers
purpose of separate assessment
21
Waiving of duty on goods, derelict,
Dy./Asst.Commissioner
jetsam etc.
22(3)(A)
Ascertaining the value of damaged
Dy./Asst.Commissioner
or deteriorated goods
22(3)(B)
Sale of goods by either public
Dy./Asst.Commissioner
auction or by tender
25
Power to grant exemption from duty
Central Government
27
Power to grant Refund of Duty
Dy./Asst.Commissioner
Amount
27(3)
Refund of duty consequent to any
Superintendent /Appraisers/ Inspectors
order passed in appeal or revision
28(1)
Serving of notice for payment of
duty that has not been levied or has
been short levied or erroneously
Superintendent /Appraisers/ Inspectors
52
refunded.
30(1)
Delivery
of
Import
Manifest
or
Dy.Office Superintendent/ U.D.C.
30(1)
(a) Delivery of Import Manifest
Dy.Office Superintendent/ U.D.C.
Proviso
before arrival of the vessel
30(1)
(b) Delivery of Import Manifest after
Proviso
24 hours
30(3)
Permission
Import report
to
amend
Import
Manifest
Dy./Asst.Commissioner
D.O.S./Superintendent except the levy
of consolidated fee or fine under Sec.
117 and reduction in the number of
packages in the Import Manifest, where
the Asst./Dy. Commissioner will be the
proper officer.
31(10
Permission to grant entry inward
Inspector
31(2)
Entry Inward and permission to land
Where incomplete manifest is filed-
before Import Manifest is delivered
Superintendent. Where no manifest is
[in relation to 30(1)(b)]
filed-Asst./Dy. Commissioner
32
Permission
to
unload
imported
Asst./Dy. Commissioner
goods unless mentioned in the
Import Manifest
33
Permission to unload goods at
other than approved places
Asst./Dy. Commissioner
53
34
Supervision of Import and Export of
goods
from
and
on
Inspector
any
conveyance.
35 Proviso
Special permission for any goods or
any
class
of
goods
to
Asst./Dy. Commissioner
be
waterborne w/o being accompanied
by a Boat Note
37
To board vessel
Inspector
38
Proper Officer to require the person
Supdt./Appraiser/ Inspector/D.O.S.
in charge of conveyance to produce
any
document
and
to
answer
questions
39
Entry Onwards
40 (a)
Proper
shipping
officers
bill
D.O.S./U.D.C/ Inspector
for
or
passing
a
bill
a
Inspector
of
transshipment
40(b)
Passing of baggage and mail bags
Inspector
41(1)
Delivery of export manifest
Receiving clerk
41(1)
Furnishing of security as the proper
Asst./Dy. Commissioner
Proviso
officer deems sufficient for delivery
manifest within 7 days from the
date of departure of the vessel
54
41(3)
Amendment of export manifest
Asst./ Dy. Commissioner
42
No conveyance to leave without
Asst./ Dy. Commissioner
written order
45
Custodians of Imported Goods
Commissioner of Customs
45 (2)(b)
Permission to remove the goods
Supdt./Appraiser
from the Customs area
46 (1)
46(1)
Proviso
Entry of goods on importation
Receiving clerk(Import dept.)
a. Examination of goods
prior
to
entry
on
in
the
importation
absence
of
Superintendent
full
information
b. Permission to deposit
such goods
without
warehousing
46(2)
Acceptance of bill of entry for part
Asst./ Dy. Commissioner
Asst./ Dy. Commissioner
consignment and of bill of entry
covering goods brought under more
than one bill of lading
46(4)
Production of invoice by importers
Supdt.
in support of his declaration
46 (5)
Permission for substitution of bill of
entry for home consumption for a
bill of entry for warehousing and
Asst./ Dy. Commissioner
55
vice versa
47
Permitting clearing of goods for
Supdt.-
in
case
of
second
home consumption
appraisement. D.O.S./O.S.- in case of
first appraisement
48
Permission to clear goods for home
consumption
after
two
Asst./ Dy. Commissioner
months.
Permission to sell goods, clearance
of transshipment after two months
50(1)
Entry of goods for exportation
Receiving
clerk
of
the
exporting
department
51
Permitting clearance of goods for
Supdt./Appraisers/
export
Inspectors
54(1)
Permission of allowing loading
All Inspectors
54(1)
Presentation of bill of transshipment
Receiving clerk of Import section
54(3)
Permission for transshipment
Asst./ Dy. Commissioner
59(3)
Acceptance of a fresh bond from
Asst./ Dy. Commissioner
Proviso
the transferee when warehoused
goods are transferred to another
person
60
Permission to deposit goods in a
warehouse
Superintendent
Examiners/
56
61
Extension of ware housing period
Commissioner
by 6 months
Extension of Ware Housing period
Chief Commissioner
beyond Six Months
62(1)
Control over warehoused goods
Inspectors /Preventive officers
62(2)
Permission to enter a warehouse
Asst./ Dy. Commissioner
and remove goods
62(3)
Causing any warehouse to be
Asst./ Dy. Commissioner
locked with the lock of the customs
department
62(4)
63(2)
Power to have access and examine
Supdt./Appraisers/
the goods
Inspectors
Permission
of
sale
of
goods
Asst./ Dy. Commissioner
deposited in a warehouse if the rent
or warehoused charges are not
paid within 10 days
64(a)
to
Permission for the owner to deal
(c)
with the warehoused goods
64(f)
Permission to take samples of
goods
without
consumption
entry
and
if
for
home
permitted
without payment of duty on such
samples
Asst./ Dy. Commissioner
Asst./ Dy. Commissioner
Examiners/
57
67
Permission to remove goods from
Asst./ Dy. Commissioner
one warehouse to another
68 ©
Clearance of warehoused goods
Superintendent
69©
Clearance of warehoused goods for
Asst./ Dy. Commissioner
exportation
72(1)
Demanding duty payable together
Asst./ Dy. Commissioner
with penalties, rent, interest and
other charges payable in respect of
warehoused goods.
72(2)
Sale of warehoused goods by
Asst./ Dy. Commissioner
auction
73
Cancellation of warehoused bonds
Asst./ Dy. Commissioner
77
Declaration of contents of baggage
Superintendent
by the owner
79(1)
Passing baggage free of duty
Supdt./Asst./Dy. Commissioner
80
Temporary detention of dutiable or
Asst./ Dy. Commissioner
prohibited
articles
for
being
returned to the passenger on his
leaving India
85
Stores allowed to be warehoused
without assessment
Asst./ Dy. Commissioner
58
86 (2)
Permission
to
transfer
stores
Asst./ Dy. Commissioner
imported in a vessel to any other
vessel as stores for consumption
89
Stores to be free of export duty
Asst./ Dy. Commissioner
97(2)(b)(c)
Guarantee deposit for payment of
Asst./ Dy. Commissioner
all dues besides any penalty that
may be levied under sec.116
100
Power to search suspected persons
Supdt./Inspectors
entering or leaving India
101
Power to search suspected persons
Supdt./Inspectors
in certain other cases
103
Power to detain with a view to
Supdt.
screen or x-ray bodies of suspected
persons
for
detecting
secreted
goods
104
Power to arrest
106
Power
to
stop
Supdt./Inspectors
and
search
Supdt./Inspectors
conveyances
107
Power to examine persons
Supdt./Inspectors
110
Seizure of goods, documents and
Supdt./Inspectors
things
59
129(2)
To return to the appellant such
Supdt./Appraiser
amount of duty or penalty as was
decided in appeals is not leviable
142 (1)(a)
Recovery of sums due to the
Asst./ Dy. Commissioner
Government
141 (1)
Power to take samples
Supdt./Appraisers/
Examiners/
Inspectors
145
Examination of goods
Supdt./Appraisers/
Examiners/
Inspectors
149
Amendment of documents
1. B/E (amendments in the Import
department prior to their receipt in the
appraising department
Minor discrepancies in marks,
nos. description of packages as
declared and as declared in the
bills of entry-Sudpt./Appraiser
Discrepancies of serious nature
or presenting doubtful features—
Asst./Dy.Commr.
Bills of entry : amendment in
description, contents, quantity,
quality or value: all appraisers,
inspectors
and
Asst./Dy.Commrs. according to
the
duty
and
value
limits
involved.
II Shipping Bills- Same as (a),
60
(b), (c) relating to bills of entry.
III
Amendments
to
Transshipments
reshipments
and
applications-
Asst./Dy. Commissioner
IV
Amendments
in
Port
ClearanceAsst./Dy.Commissioner
V
Amendments
in
Baggage
declaration-Asst./Dy.
Commissioner, Inspector
VI Amendments to Bonds (all
kinds)-Asst./Dy.Commissioner
VII
Any
other
documents-
Asst./Dy.Commissioner
CHAPTER - THREE
3.
IMPORTS AND EXPORTS BY SEA
3.1.
PRELIMINARY
61
To effectively regulate the movements of goods and people across
huge amplitude of borders, the Central Government has notified Customs areas
such as ports, airports, land customs stations, ICDs, CFSs, FPOs, etc., under
Sections 7 and 8 of the Customs Act, 1962. These places only are the authorised
places for loading / unloading, warehousing and clearance of imported / export
goods or coastal goods.
This Chapter deals with the provisions envisaged in the Customs Act, 1962,
for arrival, departure and stay in a customs area, of vessels carrying imported or
export goods. The procedures regulating arrival / departure of aircrafts are discussed
in the Chapter on Airport.
Section 141 of the Customs Act, 1962, lays down that all conveyances &
goods in a customs area shall, for the purposes of enforcing the provisions of the
Act, be subjected to the control of the officers of Customs.
3.2.
ARRIVALS OF VESSELS IN PORT / HARBOUR
The bulk of the import / export of the goods in India is still handled through the
sea routes which is catered to by the vessels owned by Indian companies as well as
foreign companies. The various formalities related to the arrival / departure including
documentation, of these vessels are handled by the owner or appointed shipping
companies.
3.3.
Anchorage Lines
Anchorage line is an imaginary line on the bordering sea of the port /harbour
which defines and demarcates the outer and inner limits of the port/harbour.
a) Inner Anchorage- the inner anchorage is the notional extension of the
port/harbour where anchoring positions are assigned to the vessels before their entry
into the port/harbour/docks. It extends approximately one nautical mile from the
shore and is regarded as the limits of the port/harbour, wherein the entry of the
vessels is declared to be as entry into the port/harbour.
This is the area where the Customs Boarding Officer has to board the vessel
and take the Arrival Report from the Master of the vessel. Further, the requirements
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of giving prescribed notice and of paying the prescribed fees under the Customs
Act, 1962, are applicable to loading / unloading of any export/imported goods within
this limit.
b) Outer Anchorage- just like Inner Anchorage, the Outer Anchorage is the
demarcated place between the Inner Anchorage and the entrance channel of the
port/harbour. The vessels anchored in this area are beyond the jurisdiction of the
Boarding Officer as the entry of the vessel into this area is not regarded as entry into
the port/harbour.
3.4.
PREVENTIVE CONTROL IN THE PORT / HARBOUR
The movement of conveyances carrying imported & export goods within and
around docks areas is a continuous activity. It is therefore important to monitor,
control, regulate and keep watch on the movements of these conveyances not only
for implementation of various rules and laws governing such movements but also to
check any illegal activity that these conveyances may indulge in.
Preventive staff functioning as Section Officers are empowered under
Sections 37, 38, 106 and 141 of the Customs Act, 1962, to board any conveyance
carrying imported / export goods, inspect or search it or require the person-in-charge
to produce any documents and answer any questions in respect of such goods.
3.4.1. Boarding Of Vessels:
As per Section 10 of the Customs Act, 1962, the Commissioner of Customs is
empowered to appoint, in or near any customs port, a boarding station for the
purpose of boarding of, or disembarkation from, vessels by officers of Customs.
Every vessel arriving into India have to report its arrival immediately to the
Customs and Port Authorities. This is done by the Master of the vessel by submitting
an ' Arrival Report ' to the Boarding Officer of the Customs. The Boarding Officer is
required to board all the vessel on its arrival in India. The main purpose of boarding a
vessel, inter-alia, is to collect the Arrival Report and putting the bonded stores of the
vessel under Customs seal.
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3.5.
Arrival Report
The Arrival Report is the first document which gives details about the vessel,
its stores, cargo and personnel carried on board. It usually consists of ( all
documents in duplicate )-
a) General declaration,
b) Vessel's store list
c) Crew list
d) Private property list of the members of Crew,
e) In case of passenger ships, a list of all disembarking / embarking passengers at
the port and in transit to other foreign / Indian ports.
The other documents to be collected (in duplicate) along with the Arrival
Report are
i)
list of same bottom cargo,
ii) list of deck cargo, vessel's currency declaration,
iii) list of arms & ammunition on board,
iv) list of permissible dangerous drugs for the use of vessel and its crew,
If the vessel has arrived from a foreign port via an Indian port, a ' Circulating
Copy ' of the documents listed at a) to e) above, placed on board in a sealed cover
by the Section Officer of the last Indian port of call, is also to be collected.
3.6. Duties of the Boarding Officer :
a) He shall keep an updated record of arrival / departure programmes of all the
vessels in the port and shall maintain a register for all the vessels arrived,
64
anchored in the stream or taken berth in the docks, indicating all the details
therein.
b) He shall board all the vessels immediately on their first arrival in the port in a
voyage and collect the Arrival Report thereof in the manner described above and
endorse the same.
c) He shall verify the consumable stores of the vessel with declarations and put the
items like liquor, cigarettes & tobacco, arms & ammunitions and other sensitive
items, belonging to the vessel as well to the crew, under Customs seal, as
prescribed in the Regulations above.
d) He shall carry out a percentage check (minimum 5 %) of the property in
possession of the Crew vis-à-vis their declarations and liquor and cigarettes in
excess of permissible quantity shall also be kept under seal.
e) He shall forward without delay, the Arrival Report and other documents collected
by him to the Import Department / Manifest Clearance Department of the Custom
House and keep a record of despatch of the same.
f) After obtaining the documents, he should physically check the "Deck and load
line “ of the vessel to the effect that they are clearly marked and well preserved
and should make an endorsement accordingly on the Arrival Report.
g) He shall verify if any gift / favour parcels have been declared on board and check
the nature of contents, port of delivery, consignee / consignor's particulars, etc,
shall the same and direct the master of the vessel to get them cleared through
Customs at the Divisional Office.
h) He shall check the shops or the ' shopchest ' as the case may be in accordance
with the list provided by the master in selective manner and place them under
paper seals.
i) He shall also ascertain that undeclared and prohibited goods have not been
placed or secreted on board the vessel by taking casual strolls around the deck,
crew cabins etc.
j) Any discrepancies in quality or quantity in the stores of the vessel or the property
of the crew should be reported to the Asstt. / Dy. Commissioner (Preventive)
through Divisional Superintendent as these anomalies attract penal provisions of
the Customs Act, 1962.
k) He shall regularly intimate the Rummaging Section of the Custom House about
the arrival/departure of the vessels into/from the port/harbour.
65
While carrying out the above duties by the Boarding Officers, care should be
taken to show utmost courtesy and maturity while entering cabins, checking the
private belongings of the Officers and other Crew members. Needless to say that
the members of the crew, who may be sleeping after night-duty, should not be
disturbed as far as possible. This, however, does not imply that the Boarding
Officer should be negligent or lenient or should in any way compromise while
carrying out his duties.
3.7.
ENTRY OF VESSELS AND CARGO
Entry Inwards
Section 31 and 32 of the Customs Act, 1962, stipulate that imported goods
shall not be unloaded unless an ' entry inwards ' has been granted and the goods
are mentioned in the Import Manifest or Import Report. To obtain 'entry inwards', the
Shipping or Steamer Agents file an application for the same along with Import
Manifest in the Import Department of the Custom House. As the Customs Act, 1962,
also provides for the submission of Import Manifest before the arrival of the vessel,
normally the Steamer Agents submit before the arrival of the vessel, a ' prior entry
manifest ' and obtain a ' prior entry inwards ' which facilitates the processing of
documents by the Steamer Agents and the importers of the goods. The ' prior entry
inwards ' is granted by the Import Department of the Custom House on the
undertaking by the Steamer Agents to produce all the prescribed documents within
24 hours of the arrival of the vessel.
3.8.
Import Manifest
Section 29 of the Customs Act, 1962, read with the Import Manifest (vessels)
Regulation 1971prescribes that the person-in-charge of a vessel or aircraft entering
India from a place outside India shall not cause or permit the vessel or aircraft to call
or land at any place other than a Customs Port or Customs Airport for the first time
66
after arrival in India or at any time while it is carrying passengers or cargo brought in
that vessel or aircraft. However, subject to certain conditions, these restrictions are
relaxed in relation to any vessel or aircraft which is compelled by accident, stress of
weather or other unavoidable cause.
As per Section 30 of the Customs Act, 1962, after arrival, the person-incharge of a vessel or an aircraft is required to deliver to the proper officer, an Import
Manifest and in the case of a vehicle, an Import Report, within 24 hours in the case
of a vessel and within 12 hours in the case of an aircraft or a vehicle. In case of
delay, on sufficient cause being shown, the Import Manifest or Import Report may be
accepted by the proper officer any time thereafter. In the case of a vessel or an
aircraft, there is provision to deliver the Import Manifest before arrival of the vessel
or the aircraft. Further, if there is no fraudulent intention, the proper officer may allow
amending or supplementing the Import Manifest. The Import Manifest or Import
Report, consists of, inter alia , details of all the goods including the goods to be
unloaded at the port.
Note:- The principal notification No. 35, dated the 17th April , 1971 published in the
Gazette of India , Part II, Section 3, Sub-Section (ii), dated the 17th April, 1971 vide
S.O.1640 and last amended vide notification No. 17/95-CUSTOMS (N.T.), dated the
13th March, 1995, published in the Gazette of India Extraordinary, Part II, Section 3,
Sub-Section (i), dated the 13th March , 1995 vide G.S.R. number 132 (E).
3.9..
PREVENTIVE CONTROL IN DOCKS / BUNDERS
Once a berth has been allotted, the vessel moves inside the docks for loading /
unloading of the cargo. The ports have special facilities for berthing of the vessels
called 'jetties' or wharves. These wharves or jetties often have enclosed areas
alongside for storage of and equipment for loading / unloading of export / import
cargo. There are also some specific docks, known as ' Dry docks ', for repairing etc.
of the vessels. The docks are enclosed and guarded areas wherein all the activities
related to the shipping are mainly concentrated. The Docks have several Gates
through which movement of goods, ships stores, personnel, etc. takes place. These
Gates are always manned by the Security staff, Port staff and the Customs staff
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also. Some of these Gates operate round the clock whereas some Gates have
specific timings and restrictions about the nature of Cargo moving through the same.
The Preventive staff posted at these Dock Gates have to perform multi-faceted
duties in relation to transaction of Customs work in the Docks. Besides this, they also
have to be alert towards unauthorised removal of any goods, ship stores etc. from
the Docks.
The vessels carrying imported or export goods berth into these docks
depending upon the nature of cargo, facilities and availability of the berths. For
loading and discharging of oil, petroleum and hazardous cargo, there are special
jetties, usually at a secluded place, having special facilities and equipment for
handling the same. Besides this, there are special berths & jetties for embarkation /
disembarkation of the passengers & vessels' personnel within the docks.
Similarly, there are Bunders and Minor Ports near or outside the docks. These
formations are guarded but normally not enclosed and generally cater to the coastal
trade. They also have the storage and loading / unloading facilities more or less like
docks.
3.10. Divisions & Sections
On berthing in a Section, the vessel remains under the Preventive control of
Section Officers who are supervised by the Divisional Superintendents (Preventive).
A dock normally consists of several wharves or jetties for berthing of vessels
and having equipment & enclosed storage areas (Sheds) for loading / unloading of
cargo. For customs administration purposes, the entire docks area under preventive
control is divided into ' Divisions „, each of which is supervised by a Preventive
Superintendent, assisted by Preventive Officers. These Divisions are sub-divided
into ' Sections ' comprising of a number of jetties & their Sheds. The Sections are
manned by Section Officers, normally Superintendents ( Preventive ) assisted by
Preventive Officers.
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3.11. Divisional Superintendents - Duties
For administrative purposes, the areas of Docks are divided into Divisions and
each Division is placed under the charge of a Superintendent ( Preventive )
according to the need and sanctions at the respective ports. The Superintendents (
Preventive ) attend their duties at these Divisions
according to the timings
prescribed by the local Custom House. Following is the broad spectrum of the duties
of Divisional Superintendent :a ) Each Divisional Superintendent is primarily responsible for ensuring adequate
arrangements for dealing promptly and efficiently with all transactions of Customs
work related to the Preventive Department within the limits of the Division and he
should ensure that the provisions of the law and regulations in force are well
understood and intelligently applied by the staff under his control. He should take
special care to satisfy himself that no irregularities are being committed by any
member of the staff.
b ) While visiting the stations in his Division, the Superintendent should ensure that
all the Officers and Sepoys posted at various stations and beats are present at
their posts and are alert. He should not confine his attention only to the stations
where staff is posted, but should also visit the stretches of foreshore in his
Division where no special guard is provided.
c ) He should supervise the transactions that take place in the sheds at the time of
his visit and should check the cargo vis-à-vis documents. He should pay
particular attention to bonded, drawback, and transhipment cargo and to the
goods landed at and cleared from docks and bunders. Occasionally, he should
also check Cart Chits or a Bill of Entry to see that the goods are properly
accounted for.
d ) He should pay surprise visits to vessels in his Division and see that firearms,
wines and spirits, cigarettes, etc., have been placed under seal. He should also
visit vessels after all the passengers have disembarked and see that no baggage
has been left on board or elsewhere – which may be irregularly passed out once
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examination and clearance of baggage has been completed in the ordinary
course.
e)
The Divisional Superintendent is also required to check at least once during a
vessel's stay in Port, the account of the stock of Bonded stores on board. He
should thereafter suitably endorse the store list of the vessel every time he
carries out such checks.
f ) He should regularly check the work of Officers posted at the Gates and other
Stations and should endorse their Station diaries indicating the time & other
details of his visits and also mentioning therein any special
or important
observations. He should check all the records maintained at the Gates and other
Stations and initial the same in token of having checked them.
g) Divisional Superintendent supervising the Baggage work shall be responsible for
the smooth and efficient clearance and avoidance of delay & harassment to the
passengers or vessels' crew. He should ensure that all the Officers & other staff
posted for clearing baggage do not leave their places of posting without proper
relief and should also keep watch over suspected passengers and persons.
h ) Appropriate entries should be made in brief in Divisional Superintendents' diary
to indicate the extent of his supervision, visits made and any irregularities noticed
by him in his jurisdiction.
i)
Any irregularities noticed by them should be reported immediately to the Asstt. /
Dy. Commissioner of Customs ( Preventive )(General).
3.12.
Superintendent‘s Patrol at Nights and on Sundays / Holidays
The Divisions, where Superintendents are not posted in shift duties, shall be
patrolled by Superintendents ( Preventive ) on the nights of all the working days and
on Sundays and holidays to the extent decided by the respective Customs House,
for the purpose of supervising the work of the staff posted for duties at various
stations in these Divisions.
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The Superintendent in-charge postings shall depute the Superintendents for
such night patrols on all working days and for day and night patrols on Sundays /
holidays with the approval of the Asst. / Dy. Commissioner ( Preventive ). The
posting for patrols on Sundays and holidays and for night patrols on working days
shall be made on the previous working day.
The patrolling Superintendent ( Preventive ) shall perform duties of Divisional
Superintendents as described above, so far as supervision of the staff is concerned.
He shall keep record of his visits and any observation made, in a register prescribed
for the purpose and the same shall be submitted to Asstt. / Dy. Commissioner (
Preventive ) in the morning of next working day for perusal.
3.13. Duties Of The Section Officers
As described earlier, the unloading / loading of goods or embarkation /
disembarkation of passengers on a vessel takes place at the wharves or jetties
which have equipment and other facility for the same. Thus the Sections are the
areas where all the important activities related to a vessel or the goods take place.
This is the place wherefrom the vessel's personnel and staff of various other
agencies move around. Thus, the Section Officer has to perform some very
important multi-functional duties.
Some of the duties of the Section Officers are summarised belowa) He shall be responsible of all the work and all the documents relating to the
vessels in his jurisdiction and in the event of any vessel changing berths between
Sections, shall forward all the papers relating to the vessel to the concerned
Section.
b) He shall patrol in and around his Sections and be on alert so as to detect and
prevent any unlawful activity like unauthorised loading / unloading of dutiable,
prohibited or restricted goods.
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c) He shall keep a watch on the gangway and examine, wherever necessary, all the
hawkers, vessel's personnel, staff of Steamer Agents and other agencies and any
suspect person- boarding or leaving the vessel.
d) He shall exercise general supervision in respect of discharge or shipment of the
cargo and shall ensure that nothing is placed on board without a duly passed
shipping bill except for stone ballast, passengers' accompanied baggage, crew
belongings, fresh vegetables, fruits and common stores, in reasonable quantities,
required for daily use on the vessel.
e) In case of any vessel berthing in his Section directly or which has not been
boarded, he shall perform all the duties of the Boarding Officer as detailed in the
previous paragraphs.
f) He shall ensure that the shipments of dutiable, drawback, reshipment,
transhipment and ex-bond goods are covered by proper documents.
g) He should board the vessels in his Sections in order to ensure that the bonded
stores put under seals are not dealt with in any manner by anyone except as
provided under the rules. He shall also check other stores randomly.
h) He shall ensure that all the fresh supplies of bonded stores received by the
vessel in port are duly entered in the Section records and in the vessel's stores
list and circulating copy, and are kept under the seal of Customs on board.
i) During the vessel's stay in the port, he shall issue the bonded stores for the
consumption of vessel's personnel in accordance with manner described in next
paragraph.
j) He shall ensure that no imported goods / equipment of the vessel for repairs,
discharged from the vessel, leave the shed without proper covering of
documents.
k) He shall not only verify the covering documents but also check all drawback,
reshipment, transhipment and ex-bond cargo to be shipped.
l) After the shipments of the goods is complete, he shall certify the Shipping Bills
and A R 4 forms in the case of excisable goods, to that effect on the basis of
Mate Receipts issued by the Agents, with clear endorsements.
m) He shall make necessary authentication of any change in the vessel's crew list,
store list, property list and any other documents.
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n) In the case of movement of vessel's equipment for repairs, aerated water bottles,
vessel's linen, the procedures described in the Chapter on „Ship's Stores‟ of this
Manual, should be followed.
o) At the time of departure, he shall board the vessel and after having ensured that
the Master of the vessel has complied with all the Customs formalities, shall grant
the Port Clearance, issued by the Export department, to the Master of the vessel
and shall collect required departure documents.
p) He shall make entries in the Section Register for all the Bonded Cargo/
Transhipment Cargo etc. brought under Preventive escort and ensure that the
same is duly received by the vessels‟ Agents / Master.
q) He shall forward all the Bonded Cargo / Transhipment Cargo etc., duly sealed,
under Preventive escorts and keep a record of the same.
r) In cases, where the Shipping Bills for the cargo shipped through his Section have
been processed electronically, he shall complete the certification of shipment and
other formalities in respect of such cargo, as has been discussed in the Chapter „
Electronic Data Interchange „
3.14. Duties Of Docks‘ Gate Officers
The efficiency of the Preventive control in the docks depends to a great extent
on the alertness and vigilance of the Gate Officers and on their knowledge of the
regulations and orders applicable to the different classes of goods and persons with
which they have to deal. They should therefore be thorough with the latest rules,
regulations and standing orders. Following is the summary of the duties, which they
are required to perform. –
(a) The Gate Officer must satisfy himself that no dutiable goods are passed out
except under proper authority and for this purpose shall examine any package
brought by any person or by any vehicle (other than cargo). When any goods
liable to duty are found, the person or vehicle shall be directed to the Divisional
Superintendent‟s office under the escort of a Sepoy. If the detection is made at
night or on Sundays or holidays when the office is closed, he shall detain the
articles and give the owner or person-in-charge of the goods a detention receipt
73
with instructions to attend the Divisional Superintendents office on the following
working day.
(b) In the case of imported cargo delivered to consignees by the Port Trust and
brought to the gate for passing out into town, he shall occasionally, check the
contents of vehicles and verify that the numbers, marks and descriptions of the
packages correspond with the particulars shown in the relative cart chits and Bills
of Entry. He shall also see that the Bills of Entry bear the signature of the proper
officers of Customs authorising removal of the goods. A record of the cases in
which this check has been applied shall be kept in the prescribed form.
(c) In the case of cargo brought to the docks for shipment he shall occasionally,
satisfy himself that the goods are covered by shipping bills and that the packages
do not contain any goods, the export of which is prohibited.
(d) Baggage imported by passengers shall only be passed through the Gates
authorised for this purpose after the officer concerned has satisfied himself that
the goods have been dealt with as required by the Baggage regulations.
(e) No special check need be applied in the case of passengers‟ accompanied
baggage brought to the docks for shipment. Unaccompanied baggage must,
however, be covered by a shipping bill.
(f) Motor cars and carriages when going in or out of the docks gates through which
such traffic is authorised, shall be stopped and searched if necessary, by the
Gate officer concerned in order to verify that no dutiable goods or contraband are
being removed in such vehicles or on the persons of the passengers. When such
vehicles are carrying women in purdah, arrangements should be made for the
search to be made by Lady Officer, if such examinations is considered
necessary. The right to stop and search need not be exercised in the case of
motor cars belonging to and conveying Government and Port Trust officials of
superior status well known to officers of the Department except when there is
special reason for believing that dutiable goods or contraband have been
concealed in such vehicles. All cases of failure of any vehicle to stop at the Gates
when required should be reported to the Assistant / Dy. Commissioner through
the Divisional Superintendent.
(g) The Gate Officer should exercise a special surveillance over all persons passing
through the Gate with a view to prevent the smuggling of contraband e.g. arms,
dangerous drugs, etc. on the persons of suspicious characters. When any goods
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cause for suspicion exists, he should search such persons in the presence of 2
witnesses.
(h) In dealing with the following classes of articles, the Gate Officer shall be guided
by the instructions in the respective paragraphs of this Manual. –
(1) Official property of the Port Trust.
(2) Ship‟s stores, provisions and daily bazar.
(3) Private personal property of ship‟s Officers and crew.
(i) He should keep a record of all searches of suspects made and of examination if
vehicles done by him at the gates. The record of his activities should be so
maintained as to enable the Divisional Superintendents or the other superior
officers to check the work of the gate officer at any time.
(j) When a member of the staff, including a sepoy brings to the notice of the gate or
other officer may matter in which his suspicion has been roused, he should let the
officer concerned deal with the matter immediately and submit a report to the
Superintendent detailing the circumstances as observed by him and the name of
the officer, the information that was passed on to, including the action taken by
the officer concerned if such information is available. The officer concerned
should similarly submit a report immediately to the Superintendent stating the
information furnished to him and the action taken by him. Both these reports
should be submitted to Assistant / Dy. Commissioner (Preventive) in due course.
(k) As regards aerated water bottles, ship‟s linen, ship‟s gear & machinery parts, etc.
being passed in and out of the gate the instructions in Chapter on Stores should
be followed.
(l) Officers are not supposed to enter docks if not on duty without the prior
permission of Divisional Superintendent.
3.15. UNLOADING AND LOADING OF GOODS
Section 31 stipulates that no imported goods shall be unloaded from any
vessel until an entry inwards for the same has been granted by the proper officer.
This restriction, however, does not apply to unloading of accompanied baggage of a
passenger or a crew, mail bags, animals, perishable goods and hazardous goods.
75
Further, Section 32 requires that no imported goods, which are required to be
mentioned in the import manifest or import report shall be unloaded at any customs
station unless the same are mentioned in the said import manifest or import report.
Section 33 of the Customs Act, 1962 prescribes that except with the
permission of the Proper Officer no imported goods shall be unloaded and no export
goods shall be loaded at any place other than a place approved under Section 8 (a)
of the Customs Act, 1962, for the purpose.
Section 34 stipulates that imported goods shall not be unloaded from and
export goods shall not be loaded on any conveyance except under the Supervision
of the proper officer. The proviso to the Section permits the Board to grant general
permission and the proper officer to grant special permission in any particular case
for unloading or loading of goods without the supervision of the proper officer.
3.16. Loading / Unloading in Stream
Many a times the vessel carrying imported/export goods do not take berth in
docks due to various reasons. Sometimes, the cargo imported or to be exported is of
hazardous nature. In such cases, the imported goods are unloaded and export
goods loaded, with special permission for the same, under the supervision of proper
officer of customs.
Section 35 of the Customs Act, 1962, specifies the restriction that no imported
goods shall be water-borne for being landed from any vessel and no export goods,
which are not accompanied by a shipping bill, shall be water-borne for being
shipped, unless the goods are accompanied by a boat-note in the prescribed format.
The proviso to the Section empowers the board to give general permission and the
proper officer to grant special permission in any particular case for any goods to be
water-borne without accompanied by a boat-note.
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3.17. Unloading / Loading of goods on Sundays / holidays etc.
The transaction of Customs work at many Seaports, Airports and Land
Customs Stations is a continuos activity. The arrival/departure of conveyance,
discharging & shipment of imported & export goods, etc. takes place at these
Customs Stations around the clock. Section 36 of the Customs Act, 1962, however
puts some restrictions on the loading/unloading of goods beyond normal working
hours & on holidays.
As per Section 36 of the Customs Act, 1962, no imported goods shall be
unloaded from and no export goods shall be loaded on any Conveyance on Sundays
or on any Customs holiday or on any other day after the working hours, except after
giving the prescribed notice and on payment of prescribed fees, if any. However, the
Section exempts the loading and unloading of accompanied baggage of a passenger
or crew and mail bags, from payment of such fees.
It is pertinent to note that vide CBR notification no. 47-Cus dated 13.8.1949
and no 121-Cus dated 18.11.1961, discharge and shipping of cargo is prohibited on
the Independence Day, the Republic Day and Mahatma Gandhi‟s Birthday.
The Preventive wing of the Custom House is main functional machinery to
implement the provisions contained by Chapter VI of the Customs Act, 1962. As the
Shipping and allied activities in the Ports/airports take place round the clock, the
trade has to obtain necessary permission from the proper officer and has to pay the
prescribed fees for requisitioning the services of different categories of Customs
officers for performing Customs work on Sundays/holidays and beyond normal
working hours, in terms of the Customs (fee for rendering services for Customs
Officers) regulation, 1998.
3.18. Short Landed Goods
In the case of Shaw Wallace & Co. Ltd. v. Assistant Collector of Customs (in
Writ Petition Nos.1236/1981and 1354/1984), the Bombay High Court have laid down
the general guidelines to be followed by Customs authorities, Bombay Port Trust
77
authorities and persons-in-charge of conveyances and their agents, while
determining the liability of penalty for the short landing of goods, so as to provide for
smooth exercise of functions under the provisions of the Customs Act as well as to
ensure that injustice is not caused to any of the authorities or to the persons-incharge of the conveyance. Following are the guidelines: (A)
(i)
Liquid Cargo in bulk: The quantity shown in the Bill of lading reflected in the Import General
Manifest should be prima facie accepted as the cargo on board the vessel
brought for unloading at the Port of Bombay.
(ii)
In case, the person-in-charge of the ship or his Agent produces the
ullage survey report prepared at the Port of loading and certified by an
independent Surveyor, then the quantity mentioned in the ullage survey report
should be accepted as the correct quantity brought by the vessel for
unloading.
(iii)
The vessel should be permitted to discharge liquid cargo after a ullage
survey is carried out under the supervision of the Customs Officer and such
survey report is signed by the Customs Officer, by the ship owner and the
consignee.
(iv)
After the discharge of the liquid cargo from the vessel, a fresh survey
should be carried out in the presence of the Customs Officer and this
discharge completion survey report should be signed by the Customs Officer,
the ship-owner, and the consignee.
(v)
In case of any difference between the bill of landing, quantity and the
discharge port ullage survey report quantity, then such difference shall be
considered as short landed quantity and for which the ship owner should be
held responsible.
(B)
Cargo brought in container: -
( a )F.C.L. Container (Full Container Load)
(i)
A full container load when unloaded from the vessel and the seals are
found intact, then the vessel owner shall not be held responsible for any short
landing or be made liable to pay penalty.
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(ii)
In case where the seal is found broken, the survey report will be
prepared of the contents of such container in the presence of Customs Officer
and this survey should be carried out within 72 hours after the container is
unloaded and seal is found broken. The Customs Officer and the Port Trust
authorities should ensure that the container is re-sealed after completion of
the survey reports of the contents. Any shortage noticed in such survey report
will have to be accounted for by the carrier and the liability for such shortage
will be solely of the carrier.
(b) L.C.L. Container (Less Container Load): -
(i)
At the time of unloading of the L.I.C. container, if the seals are intact and
again at the time of de-stuffing of the container, the seals are found intact,
then the carrier should be responsible to account for the difference between
the manifested quantity and the de-stuffing tally.
(ii)
In case, the seals of the L.C.L. containers at the time of unloading are found
to be intact, but are broken or tampered with at the time of de-stuffing then the
responsibility for difference between the manifested quantity and de-stuffing
quantity would be that of the Port Trust authorities and not of the carrier.
(C)
Dry Bulk Cargo: -
(i)
In respect of dry bulk cargo, an independent survey report should be
prepared by the carrier and the consignee and such report should be countersigned by the Customs Officer before discharge of the Cargo. Such report
should be accepted for the purpose of ascertaining the actual cargo unloaded.
(ii)
The Bombay Port Trust authorities should not issue out turn report on the
basis of actual weighment after landing in cases where the survey report is
prepared and counter-signed by the Customs Officer, carrier and the
consignee.
(D)
General Cargo: -
(i)
The Port Trust authorities shall maintain tally at the time of landing of the
cargo with appropriate marks in respect of cargo without any remarks or
numbers.
(ii)
A copy of the tally sheets shall be furnished to the carrier or its agent and
the Customs Officer at the earliest. The tally sheets shall be rectified or
79
amended, if any discrepancy is brought to the attention of the Port Trust
authorities and the customs authorities.
(iii)
The Customs authorities shall ascertain whether any cargo was short
landed on the basis of the copy of the tally sheets furnished by the Port Trust
authorities and not on the basis of any out turn report forwarded by the Port
Trust authorities long thereafter.
(iv)
In respect of bulk cargo in bags, if the bags or packages are found in intact
condition, it should be so shown in the tally sheets. If the packages or bags
are found in damaged or torn condition, the survey shall be carried out
immediately and the survey report should indicated the short landed quantity.
Such survey report should be carried out as far as possible within 48 hours of
unloading.
(v)
In the case of cargo containing the packages or bags and found damage,
the Customs authorities shall also take into consideration the sweepings on
the wharf and in the ship for ascertaining whether the quantity could be
accounted for.
(vi)
Even if the cargo is landed without any makes or numbers, it should be
accepted on account of the cargo referred to in the manifest, it is established
that the cargo landed from the particular vessel.
(E)
Hazardous Cargo Discharged in Barges & Lighters: -
(i)
In case where the hazardous cargo is discharged in lighters and barges,
the stevedore who unload the cargo shall prepare the tally sheets and
unloading in lighters and barges shall place under the supervision of the
Customs Officer.
(ii)
Such tally sheets should be included in the boat-note signed by the Master
of the ship, the Master of barge, the stevedores and the Customs Officer.
(iii)
The boat note along with the tally sheet shall be the basis for ascertaining
whether the cargo has been short landed and the quantum thereof.
These guidelines should be carried out by all the concerned parties both in its
letter and spirit so that the problems would be reduced, if not totally eliminated.
On the merit of the case, Bombay High Court has held -
80
(a)
Penalty proceeding under Sec. 116 are quasi judicial proceeding hence to
be commenced by device of a show cause notice.
(b)
Penalty imposition solely on basis of out turn report and other facts not at
all considered, the High Court held the order passed by adjudicating authority
bad in law.
3.19. DEPARTURE OF VESSELS
Once the imported goods to be unloaded at a Customs Station have been
unloaded and other procedures have been complied with, the vessel prepares for
loading of Export goods. Usually, the Customs and other formalities are completed
beforehand by the master/agent of the vessel during the stay of vessel in the port.
The first step towards the completion of procedures for Customs clearance of Export
of goods, is the filing of Entry Outwards for the vessel.
3.20. Entry outwards
According to the provisions of Section 39 of the Customs Act, 1962, the
Master of a vessel shall not permit the loading of any Export goods, other than
baggage and mail bags, until an „Entry Outwards‟ has been granted to such vessel
by the proper officer.
3.21. Export Manifest
Section 41 of the Customs Act, 1962, stipulates that the person in-charge of a
conveyance carrying Export goods shall, before departure from a Customs Station,
deliver to the proper officer, an Export Manifest or an Export Report in the prescribed
format. There are provisions in this Section for acceptance of such Manifest or
Report by the proper officer, within seven days from the departure of the
conveyance, if the Agent or person-in-charge of the conveyance furnishes required
security in this regard to the proper officer.
81
This Section read with the Export Manifest (Vessels) Regulation 1976, also
makes it mandatory for the person delivering the Export Manifest or Export Report
to make and subscribe, at the foot thereof, a declaration as to the truth of its
contents.
3.22. Loading Of Export Goods
Section 40 of the Customs Act, 1962, makes it mandatory for the person-incharge of a conveyance not to permit loading of Export goods, other than baggage
and mail bags, unless a Shipping Bill or a Bill of Export or a Bill of Transhipment,
duly passed by the proper officer, has been handed over to him by the Exporter of
the goods. Also he shall not permit loading of Mail bags & Baggage, unless their
Export has been duly permitted by the proper officer.
Under this Section, loading of export goods is prohibited till the time the same
are duly examined & permitted Clearance by the proper officer of Customs. An
obligation has been cast on a person-in-charge of the conveyance not to permit
loading of Export goods unless he verifies this position from the documents handed
over to him by the Exporter.
Transhipment of goods is allowed provided they are mentioned in the Import
Manifest or Report as for Transhipment, and a transhipment application has been
made and duly allowed by the proper officer. Loading of dutiable or prohibited goods
on a conveyance without the permission of proper officer, renders such goods liable
for confiscation under Section 113 (g) of the Customs Act, 1962, attracting penal
provisions under Section 114 of the Act.
3.22.1.
Departure of Vessels from the port
Once all the unloading of imported goods & loading of export goods has been
completed and all the formalities of Customs, Port authorities and other Government
agencies have been complied with, the vessel is ready to leave the port.
82
Section 42 of the Customs Act, 1962, prescribes that no conveyance shall
leave any Customs station until a written order to that effect has been given by the
proper officer.
The conditions of grant of such order are as follows –
(a) the person-in-charge of the conveyance has answered the questions put
to him under Sec. 38;
(b) the provisions of Sec. 41 have been complied with;
(c) the shipping bills or bills of export, the bills of transhipment, if any, and
such other documents, as the proper officer may require have been delivered to him;
(d)
duties leviable on any stores consumed in such conveyance, and all
charges and penalties due in respect of such conveyance or from the person-incharge thereof have been paid or the payment secured by such guarantee or deposit
of such amount as the proper officer may direct;
(e) the person-in-charge of the conveyance has specified the proper officer
that no penalty is leviable on him under Sec.116 or the payment of any penalty that
may be levied upon him under that section has been secured by such guarantee or
deposit of such amount as the proper officer may direct;
(f) in any case where any export goods have been loaded without payment of
export duty or in contravention of any provision of this Act or any other law for the
time being in force relating to export of goods,(i)
such goods have been unloaded, or
(ii)
where the Assistant Commissioner of Customs is satisfied that it is not
practicable to unload such goods, the person-in-charge of the
conveyance has given an undertaking, secured by such guarantee or
deposit of such amount as the proper officer may direct, for bringing
back the goods to India.
83
3.23. Port Clearance –
The written order referred to in Section 42 is called “Port Clearance”, which is
issued by the Assistant/ Deputy Commissioner, Export Department, on a written
application made by the Owner, Master or the Agent of the vessel, subject to the
fulfilment of the conditions laid down in the Section 41 and 42 of the Customs Act,
1962.
The Section Officer shall board the vessel one hour before its departure for
granting the port clearance to the Master of the Vessel. He should ascertain that the
vessel has completed loading of all export cargo/stores etc. and all the hatches are
closed. He should verify and check that the load lines are well above the water level
and visible. This is to ensure that the vessel is not overloaded, endangering the
vessel and its crew members.
He should verify that the seal on the bonded stores is intact and not tampered
with. He should carry out percentage check of the private property list of the
members of the crew. He should ascertain that the balance of the Indian Currency
received by the Master for disbursement to the crew of the vessel from the agents, if
any, has been
returned back to town. If any discrepancies are noticed while
checking the above they should be reported to the Divisional Supdt. immediately. On
the other hand if everything is found in order he should deliver the Port Clearance to
the Master alongwith the Circulating copy of the vessel‟s store list in a sealed cover if the vessel is proceeding to an Indian Customs Port. He should obtain the following
documents 1) Receipt for the Port Clearance in duplicate.
2) List of deck cargo in duplicate.
3) List of ships currency in duplicate.
After the vessel has departed, he should despatch the receipt for the P C and
copy of Deck Cargo memo to Export department in the Custom House, Passenger
list and Currency declaration to the Baggage Section in the Custom House.
84
3.24. Exemptions to Certain Vehicles and Conveyances
Chapter VI envisages the provisions under Customs Act, 1962, for regulating
the movements of the conveyances carrying imported or export goods.
Section 43 of the Customs Act, 1962, however, outlines certain exemptions
granted to certain classes of conveyances from the provisions of Chapter VI. These
exemptions under Section 43 stipulates that –
a) Provisions of Section 30, 41 & 42 shall not apply to a vehicle that carries no
goods other than baggage of its occupants.
b) The central Government may exempt the following class of conveyance from all
or any of the provisions of Chapter VI of Customs Act, 1962 –
(i)
Conveyances belonging to the Government or any foreign government.
(ii)
Vessels & aircraft which temporarily enter India by reason of emergency.
3.25. PREVENTIVE CONTROL IN BUNDERS
As discussed earlier, Bunders are small ports mainly catering to the Coastal
Trade and the goods carried by native / country crafts. The Bunders are normally unenclosed but guarded areas. The Preventive supervision on loading / unloading of
goods and other activities carried in and around Bunders is necessary from the point
of view of prevention of smuggling and other illegal activities at these places. A
contingent of Preventive staff is always posted at these Bunders to oversee these
requirements.
(A)
Bunders
Although the volume of work at the Bunders is considerably less than that in
the docks, the scope for evading the requirements of the law and the prohibitions
and restrictions imposed is greater owing to the fact that the Port Trust undertake no
responsibility for the custody and delivery of goods landed at or brought for shipment
85
at any of the Bunders and that any of these places are not provided with barriers in
the form of surrounding wall of fencing to prevent the surreptitious removal of goods.
There is therefore a need for a continuous Preventive vigilance over the whole area
covered by these Bunders. For carrying out the necessary preventive measures and
for dealing with the transactions at these Bunders, a staff of Preventive Officers and
Sepoys
is
provided
which
are
supervised
by
the
concerned
Divisional
Superintendents. The duties of the staff at a bunder, in relation to the arrival and
departure of vessels and the importation, warehousing, exportation and transhipment
of goods are described in the related chapters of this Manual.
3.26. Duties of Guard duty officers at Bunders
All members of the Preventive Service posted for Guard duty at various
Bunders are expected to be alert during the entire time they are on duty in addition
to making systematic and intelligent patrols as required by the relevant orders in
force at each station. On leaving to visit another Bunder and to patrol the
intermediate portion of the foreshore, they must enter the fact in their diaries and
state the time of their departure and return. A similar entry must be made in the
diary at the Bunder visited.
(B)
Boarding Office for Native / Country crafts
This Office normally referred to as Anchorage Office, is usually situated
outside the docks area preferably at a centrally located place. This is the place
provided for dealing with all transactions connected with the arrival and departure of
country crafts carrying imported/export goods, which are required, on arrival in port –
(a) To report arrival / departure at the port,
(b) To unload imported goods / load export goods,
(c) to anchor at the places appointed by the Notifications issued under
Customs Act, and
86
(d) to comply with any other Rules and Regulations as to the discharge and
shipment of cargo at these places.
At many Ports, the Anchorage Officer is also given charge of some Bunders
where such goods are loaded / unloaded. In such cases, the Anchorage Officer has
to function also as Bunder Officer in addition to his Anchorage duties.
3.27. Functions of Preventive Staff at Anchorage Office
The staff from Preventive department is posted for dealing with the Preventive
& clerical duties and supervisory functions connected with the transactions at this
Office. The Anchorage office is supervised by the Superintendent ( P ) in- charge,
who is responsible for seeing that the procedures and instructions laid down from
time to time in this regard, are properly understood and intelligently applied and for
taking effective measures to prevent the smuggling of dutiable goods or contraband
from the vessels moored in the anchorage lines.
The primary function of the Anchorage Officer is to act as the Boarding Officer
for country / native crafts arriving and departing from / to foreign destinations at the
port / Bunder.
The duties of Superintendent and Preventive Officer at the Anchorage Office
are as follows:-
3.28. Duties of Superintendent / Anchorage
1.
Supervision of the work of Preventive staff at Anchorage Office
2.
Occasional examination of vessels(a) on arrival from foreign or Indian ports in for arms, ammunition,
contrabands, etc.
(b) from which cargo is jettisoned,
(c) with dutiable cargo proceeding to a Bunder for discharge,
87
(d) for measurement of Deck cargo on export.
(e) which has brought passengers.
(f) Country crafts which have been compelled to return after grant of Port
Clearance due to unforeseen circumstances.
3.
Occasional checking of imported bond and other stores, and also when a
country craft is converted from the foreign to coasting trade.
4.
General supervision of :(a) shipment of ex-bond goods,
(b) shipment of drawback goods,
(c) transhipment of dutiable goods.
Patrolling the Bunder / port for occasional check of –
5.
(a) loading operations.
(b) Discharge operations,
(c) Transhipment and drawback cargo,
(d) Cargo boats, barges, etc., and
3.29. Duties of P. O. In-charge / Anchorage
1.
He grants Arrival Report for all Sailing Vessels arriving from foreign
ports and going to foreign ports.
2.
He checks Import Cargo Manifest, Deck Cargo Manifest, if any, stores
list, Private property list of crew of such vessels and receives copies of these
documents in triplicate.
3.
He boards the vessels and perform the duties of Boarding Officer and
deals with the papers accordingly and maintains Arrival Register and
physically verifies the declaration made in above documents.
4.
He carries out the examination / inspection of the abovesaid vessels
(a) for arms/ammunition (b) the cargo jettisoned (c) for dutiable cargo for
discharge at the port/bunder (d) for checking of Stores List (e) for check of
Private property of the crew (f) for measurement of deck cargo ,if any.
5.
He boards the vessels again, after the final reports, completion of
discharge of cargo and after examination of the vessel, endorses the Import
Manifest accordingly.
88
6.
He grants permission to the Tindal to take his vessel for oiling and
painting or loading with export cargo to designated place, after obtaining
application in quadruplicate. The 1st copy is for his record, 2nd copy for
information of Division office, 3rd copy for information to the Division, where
the vessel is leaving for oiling and painting and 4th copy for the Tandel of the
vessel.
7.
He patrols the wharves of Bunder(s) under his control, where, cargo is
being unloaded from country crafts plying on foreign routes and does
occasional check of discharge operations. He also keep does occasional
check on discharge of cargo from Cargo Boats and Barges in the wharf.
8.
He carries out examination of vessels and check of stores when a
vessel is converted from the foreign to coastal trade and vice versa.
9.
He also carries out the examination of vessels whenever cargo is
reported to have been jettisoned or which have returned back after grant of
port clearance, due to unforeseen circumstances, such as, bad weather,
engine trouble, services sickness of any crew member etc. In such cases, the
P. O. in-charge will record the statement of the Tindal and submit his report to
Asstt./ Dy. Commissioner(PG) through Superintendent /Anchorage.
10.
He issues Boat Notes for local or transhipment cargo and makes
appropriate endorsements in these documents after completion of functions
and endorses Import Manifest accordingly for goods transhipped. He
maintains Register for Boat notes issued.
11.
He takes Arrival Report of Cargo Boats, Barges and maintains
Registers of such arrivals at the Bunder under his charge. He patrols the
wharves under his charge to ensure that no unauthorised shipment or landing
is taking place and also to prevent smuggling from country crafts, etc.
12.
He supervises unloading, if any, of Import Cargo landed by Cargo
Boats, Barges or from foreign going country crafts and maintains Cargo
Boat/Barges Register.
13.
He assists Superintendent / Anchorage in disposal of references from
other departments / ports regarding transactions dealt with at Anchorage
Office.
14.
He forwards Monthly statements of Arrival of Country Crafts plying on
foreign routes and other statements, as per orders from Custom House.
89
15.
He also submits report regarding cargo Short Landed or Excess
Landed from country crafts plying on foreign routes, Cargo Boats/Barges and
maintenance of Register regarding to Asstt./ Dy. Commissioner (P) (G)
through Superintendent / Anchorage.
(C)
Fishing jetties / wharves
Fishing crafts of various sizes & capacity, along with their fishing and other
gear depart from the ports and return to the port after few days with their catch. In
each port, certain jetties / wharves are earmarked for departure / arrival of fishing
crafts and unloading of fish.
Fishing activity is regarded as a „coastal trade‟ activity. Accordingly, the
customs formalities in respect of arrival / departure have been relaxed, except the
issuance of the seasonal passes to such crafts. Before issuance of such passes, the
owners / tindels of these crafts have to observe certain rules / regulations issued by
the Mercantile Marine Department and concerned local authorities of the State
governments.
CHAPTER - FOUR
4.
CONTAINERS AND CONTAINERISED GOODS
Standard Container sizes are 40/20/10 feet long, 8 ft. wide and 8ft. in height
while Containers of ISO standard are normally 20ft x 8ft x 8 1/2 ft or 40ft x 8 1/2ft x 9
1/2ft. Some Containers have open tops or sides while liquids are generally carried in
boiler-shaped tanks surrounded by rectangular frame. Other Containers may be
90
insulated or refrigerated. In general, the different types of Containers are referred to
as: (a) Dry (b) Tank (c) Reefer (d) Open Top (e) Flat etc. Containers are usually
identified by a 11 digit alpha numeric number - four alphabets like APLU, ICSO,
TEXU etc., followed by 7 numeric digits that is affixed on the sides. This identifier is
assigned by an International body regulating the registration of Containers of all
Shipping lines. Containers are also referred to as FCL or Full Container Load (when
the stuffed with cargo belonging to a single party), LCL or Less Container Load
(when stuffed with more than one party‟s cargo) and SOC or Shippers Own
Container (when belonging to Shipping Companies or Freight Forwarders or private
parties for special cargo).
4.01
4.01.01
Import of Containers
All Customs duties are exempt on durable imported Containers,
provided the importer executes a bond binding himself to re-export the said
Containers within 6 months and furnish documentary evidence thereof to the
satisfaction of the said Deputy/Assistant Commissioner or else to pay the duty
leviable thereon. The period of 6 months may, on sufficient cause being shown, be
extended by the Deputy/Assistant Commissioner for 3 months and thereafter by the
Commissioner of Customs for any further period as deemed fit.
[Notification No. 104/94-Cus, dated 14.3.1994]
4.02
4.02.01
Furnishing Of Bond / Guarantee
To effectively monitor the Containers, all work related to their
movement and accountability should be centralised in a designated section generally
named Container Cell or Container Movement Facilitation Cell (CMFC). Further,
respective Custom Houses should lay down procedures, as per Board‟s guidelines
with the objective of ensuring imported Containers are re-exported within the
stipulated period or else Show Cause cum Duty Demand Notice for recovery of duty,
91
imposition of fine, penalty etc. is issued.
For this purpose, the following procedure
should be observed:
(i)
The Shipping Lines/Steamer Agents / Owners of Containers or Non Vessel
Owning Common Carrier (NVOCC), or their authorised representatives should
execute
a
general
continuity
Guarantee
/
Bond
(without
Bank
Guarantee/security) undertaking to re-export the imported Containers within
stipulated period or else pay appropriate duty and penalty, if any.
(ii)
The
Bond
amount
should
cover
only
the
duty
element
on
the
imported Containers and not its cargo. However, in case of default duty would
be leviable on actual calculations based on the value of the Containers and
rate of duty.
(iii)
The validity period of the Bond should be for one year, extendable till further
such period as required.
(iv)
Deputy/Assistant Commissioner may extend the re-export period beyond 6
months for further 3 months for reasons to be recorded in writing.
(v)
Extension for re-export beyond 9 months should not be routinely granted, but
may be allowed for period not exceeding 6 months at a time by the
Commissioner of Customs in genuine cases for reasons to be recorded in
writing.
(vi)
The clearance of Containers, whether empty or loaded, intended for
temporary admission will be allowed without filing a separate Bill of Entry for
each Container. The party concerned should intimate to the Customs, the
number and identification particulars of the Containers to be moved outside
the Customs area. The Bond for such movement could be either for a specific
consignment of Containers or a general bond covering a larger number of
Containers.
[F. No. 434/17/94-Cus IV, dated 14.5.1994, F. No. 450/11/88 Cus IV, dated
5.11.1998 and Circular No. 31 /2005-Cus, dated 25.7. 2005]
92
4.03
Release
of
Containers
Detained
for
Examination and Investigation
4.03.01If Containers are detained for the purpose of examination, investigation etc.,
the goods should be destuffed from them and stored in any warehouse and the
empty Containers released so that Shipping Agents could fulfil the commitment of reexporting them within 6 months of import.
[Circular No. 83/98-Cus, dated 5.11.1998]
4.04
Movement of Containers and Containerised
Goods
4.04.01
FCL cargo meant for ICDs will be shown on separate sheet called Sub-
manifest sheet in the main IGM. Further, the movement of Containerised import
cargo to ICDs/CFS is actually transshipment that is allowed subject to observance of
conditions prescribed in the Goods Imported (Conditions of Transhipment)
Regulations, 1995. Such movement of loaded Containers is required to be under
proper control of Customs. For ensuring security and to safeguard against
tampering, the Containers should be sealed with tamperproof bottle seals and the
cost of such seals recovered from the agents. However, tamperproof bottle seals
are not required for import loaded Containers being moved within Docks. Further,
when imported goods are moved under Bond, the amount of Bond guarantee should
not exceed the Customs duty leviable on the goods.
[F. No. 434/17/94-Cus IV, dated 18.5.1994 and Circular No. 80/95-Cus IV, dated
4.7.1995]
[Please also refer to Chapter ―Transit and Transhipment‖ of this Manual].
93
4.05
Automated Movement of Containerised Cargo
from Gateway Ports to Hinterland Ports
4.05.01
Transshipment of Containerised cargo from a Port to an Inland
Port/ICD/CFS where the Indian Customs EDI System (ICES) is operational is
automated. This involves electronic exchange of messages amongst Customs, Port
authorities, ICDs and Shipping Agents. In the automated Transshipment Module, the
requirement of an application by the carrier is done away with and the SMTP (Sub
manifest Transshipment Permit) portion of the IGM itself is treated as a request for
transhipment. Carriers are not be required to separately file an application for this
purpose, but will be required to indicate the code of the transporter undertaking the
transshipment (e.g. CONCOR) in the IGM.
The ICES system will allow
transshipment of those Containers against whom the port of destination is indicated
as ports other than the port of discharge.
4.05.02
The transshipment permit information will be sent to the carrier, the
transporter undertaking the transshipment, Custodian of the gateway port, and the
ICES system at the destination ICD. Transshipment permit can also be printed by in
the Custom House.
4.05.03
The transshipment permit transmitted to the recipient port / ICD / CFS
will automatically be converted into an IGM and the Shipping Lines will not be
required to file any fresh IGM in respect of such Containers.
4.05.04
The transporter performing the transshipment will be required to
electronically submit a Container arrival report to the ICES system at the destination
ICD / CFS in a specified format. The Container arrival report will be matched with
transhipment message received from the Gateway Port and a „landing certificate
94
„message will be generated by the inland port / ICD / CFS which will be transmitted
to the Gateway port for closure of IGM Lines.
[Circular No. 46/2005-Cus, dated 24.11.2005]
4.05.05
EDI system of Customs has a bond module for both Custodianship and
transhipment, which will be fully utilized once „message exchange facility‟ is
operationalised between two ports. The bond module provides for discharge of the
bond and its re-credit on production of certificate of transfer of goods at the
destination through receipt of electronic message between Gateway port and
destination port or between two Customs stations.
[Circular No.47/2005-Cus, dated 24.11.2005]
4.05.06
auto
Movement of Containerised Import Cargo from the Port to CFS: For
approval
facility
to
move
Containers
from
Port
to
CFS,
CFS
operators/Custodians are not required to make a separate application to the Deputy /
Assistant Commissioner (Imp and Exp) and the movement request is part of IGM
filing process. For this, the Importers / CHAs / Steamer Agents / Shipping Lines
must ensure that the code of the destination CFS is clearly mentioned in the IGM, so
that the auto approval is granted at the time of grant of "Entry Inward" in the ICES
System. Further, CFS Operators/Custodians, Steamer Agents/Shipping lines and
MLOs must ensure the following parameters are specified while submitting the IGM
in ICES.
In Message 1B -
SACHI02
(a) at Sl.No.23 Nature of Cargo should be ‗C‘ or ‗CP‘
(b) at Sl.No.25 Cargo Movement should be specified as ‗LC‘
(c) at Sl.No.37 Bond Registration No. should be specified
95
(d) at Sl.No.40 MLO code must be specified with the owner shipping agent
code.
Auto approval is applicable for the „C‟ (Containerised) or „CP‟ (Part of the
consignment is Containerised and remaining is Packaged but not Containerised)
nature
of
cargo
only.
Once
auto
approval
is
granted,
the
Shipping
Agent/Port/Destination CFS will receive the messages in Message No.CHSAI26
regarding grant of permission for movement of Containers to Destination CFS.
4.05.07
Amendment of CFS Movement Approval: There is provision to amend
any Movement Request parameter before approval is granted if the Containers have
not moved out of the Port/CFS area (Container exit information is available from the
gate module). After the auto approval is given, amendments are permitted by the
Deputy/ Assistant Commissioner / Superintendent / Appraiser only in the following
cases:
(a)
En-block Movement to a different CFS: When Containers earmarked
for a CFS are not cleared within stipulated time of 48 hours are to be
moved en-block to a different CFS at the discretion of the Port.
(b)
Change of Destination CFS: When the Shipping Agent/ MLO / Importer
/ CHA requests for the amendment.
(c)
Cancellation of CFS Movement Request: When the party wants Direct
Delivery from the Port itself.
(d)
Any change in the cargo/Container parameters: Changes in Container
No., Type, Line Particulars etc.
To facilitate the amendments, the following procedures are to be followed:
(a)
Request for post-approval changes is filed with the designated officer
(Deputy/ Assistant Commissioner / Superintendent / Appraiser).
Applicant shall mention the CFS Movement No. and Date while
requesting any amendment.
96
(b)
After verification of relevant details/records, the designated officer may
approve the amendment. System will also internally run its own
validation checks and will reject any invalid/inconsistent request.
(c)
After amendment request is approved, System carries out the following
tasks:(i)
Cancels the previous approval order and issues cancellation
message in format CHSAI24.
(ii)
Re-credits the bond already debited for original approval and
debits new bond, if applicable.
(d)
(iii)
Generates new approval order.
(iv)
Amends the CFS code mentioned in the IGM.
For minor amendments like changing cargo / Container particulars,
dropping a Container from an approved list etc. that do not require
alteration of the bond value or any other major change, System will not
cancel the existing approval order, but will make necessary changes
and send amendment message CHSAI24. This facility excludes cases
like change of destination CFS, including additional Containers etc.
4.05.08
Bond in respect of Container movement from Port to CFSs:
Bond
Module and authorisation forms in ICES (Imports) are used and the Bond Type is
„TR‟ (Transit Bond – a continuity Bond). Bond Type „General Bond (GB)‟ is also
allowed. There are 2 kinds of Bonds for Container movement to CFSs.
(1) 1st Party Bond: Given by the applicant (MLO)
(2) 3rd Party Bond: Given by destination CFS / Custodians [in this case
necessary one-time authority has to be given by the CFS to the applicant
(MLO)].
4.05.09
Bond value is calculated on the basis of the size of the Container. The
Bond amount of Rs.3,00,000/- for 20 feet Container and of Rs.5,00,000/- for 40 feet
Container is calculated by the System, which is picked up with reference to the ISO
codes declared in the IGM. The option to calculate the Bond amount on the basis of
97
invoice value of cargo will not be available under this procedure as the invoice value
is not available in the IGM. The bond amount will be debited in ICES System for
movement of Containers to CFSs and for this MLOs and Custodians are required to
register
their Bonds in ICES Bond
Module with the designated
officer
(Deputy/Assistant Commissioner /Superintendent/Appraiser) and obtain the TR/GB
Bond No.
Auto approval will not take place, if the Bond registration No. is not
mentioned in the IGM.
4.05.10
Recrediting of Bonds: The re-credit facility (wherever transit Bond is
applicable) is integrated in the Gate Module. After movement approval is given in
the System and when the Containers pass through the Custodian (Port) gate, the
Preventive Officer posted at the Port Gate shall verify/enter the Container particulars
in the ICES System. When the Container physically arrives at the CFS gate, the
Preventive Officer of Customs posted at CFS Gate will enter the details in the ICES
System. Thereafter, the System automatically re-credits the transit bond (TR Bond),
earlier debited.
4.05.11
For Direct Delivery Containers, for which the CFS code is mentioned
during IGM filing, the bond will be automatically debited at the time of auto approval
of Container movement. Likewise, in case code of CFS is wrongly mentioned as
code of another CFS, the bond will be debited against the CFS mentioned in the IGM
and the designated officer (Deputy/ Assistant Commissioner / Superintendent /
Appraiser) will have to be approached with proof for re-crediting the bond amount
debited at the time of auto approval.
4.05.12
The requirement of execution of bank guarantee for the purpose of
transhipment for all carriers of Containerised cargo, who are handling more than
1000 TEUs as import Containers in a financial year is waived. The waiver would
apply not only to shipping lines but also to ICDs/CFSs/other carriers and for carriage
98
in all modes of transhipment, irrespective of their movement by road, coastal
shipping or rail. Further, in respect of carriers with annual transhipment volume
below the limit of 1000 TEUs, but having good track record the exemption from bank
guarantee can be considered by the jurisdictional Commissioners of Customs.
[Circular No. 45/2005-Cus, dated 24.11.2005]
4.06
4.06.01
Empty Container Movement
Empty Containers are to be compulsorily declared in the IGM and their
movement processed in the same way as the cargo Containers moving to CFSs.
4.06.02
Empty Containers shall be cleared through the Empty Container Yards
(ECY). Shipping Agent/MLO shall apply for such movement in the IGM itself, just like
CFS cargo, but instead specify the ECY Code (Empty Container Yard Code) in the
IGM.
4.06.03
All Empty Container yards will have common code <Port_Code>A0
(separate codes for different ECY may be allotted to identify individual yard).
4.06.04
The Empty Container Bond shall be debited before approval of
movement order is granted by ICES.
4.06.05
Approval order shall be similar to the approval of Container Movement
to CFS. Same message in message format CHSAI26 for movement of Containers to
CFS shall be sent for Empty Containers approval to the Port/Shipping Agents.
Further, the CFS Gate Module at exit gate of the Port shall track these Containers.
99
4.06.06
The Bond value debited for Empty Container will be re-credited once
the Container is re-exported and its proof submitted by MLO to the designated officer
(Deputy/ Assistant Commissioner/ Superintendent/ Appraiser).
4.06.07
Processing for Empty Container Bond is a prerequisite for other
processing linked to the time of grant of entry inwards i.e., unless this bond is
debited, approvals like Transhipment approvals, approvals for movement to CFSs
and regularization of prior Bill of Entries will not take place. The following are the
salient features of this bond:
(a)
MLOs of the Shipping Lines should furnish a bond (type „CO‟), which would be
in force till the Containers are re-exported within 6 months (for further
extension permission has to be obtained separately). This will be a
Continuous bond that can be used for multiple debits and re-credit till its value
is exhausted. For loaded Containers, this bond will be in addition to the TP
(Transshipment) or TR (CFS Movement) bonds.
(b)
MLOs of the Shipping lines are required to register only one Container Bond
of large value so that it can be used for multiple debits. The ICES bond
module will be used for registration and management of the bond. There is
provision to enhance the bond value through additional credit.
(c)
Rate of bond value (given below) is specified on the basis of type of
Container. System would maintain a directory of bond rates based on ISO
code of the Container.
Type of Container
Bond Rate (in Rupees)
20 Feet Plain
30,000/-
40 Feet Plain
60,000/-
20 Feet Reefer
2,00,000/-
40 Feet Reefer
3,50,000/-
20 Feet Tanker
3,00,000/-
40 Feet Tanker
4,00,000/-
100
(d)
For empty Containers, the information should compulsorily be filed as part of
IGM for debiting of bond and approval of movement of empty Containers. The
MLO code may be specified mandatory for all Containerised lines in the IGM.
(e)
Processing of bond-debit is implicit in the System and no separate request is
required. On grant of Entry Inwards, System will automatically carry out the
required processing - which involves finding out valid registered bond,
calculation of Bond amount and debiting the same.
(f)
The debited value for a Container will be re-credited to the bond once the
Container is re-exported. Shipping Agents will have to apply for re-credit along
with proof of export. The designated officer (Deputy/ Assistant Commissioner /
Superintendent/ Appraiser) will approve the same on verification of proof of
export within approved time limit.
[Chennai Custom House PN No. 48/2008, dated 22.4.2008]
4.07
4.07.01
Tamper Proof Seals on Containerised Cargo
Sealing of Containerised cargo ensures the security of the cargo
contained therein. Hence, the seal used should provide total security, should not be
broken or tampered with easily, and if tampered the same should be easily
detectable by the Customs.
4.07.02
Export cargo transported through Containers or bonded closed trucks
after following the Central Excise/Customs officer supervised sealing or self-sealing
by manufacturer exporters, EOUs and Containers aggregated with LCL cargo in the
CFSs/ICDs must be sealed with tamper proof one time bottle seal alone. This would
ensure safety and security of sealing process and avoid re-examination and resealing at the point of export.
[Circulars No. 80/95-Cus, dated 4.7.1995 and
101
No. 1/2006-Cus, dated 2.1.2006]
4.08
Movement of Containers Within Port and
Outlying Areas and Clearance of Goods Contained Therein
4.08.01
On arrival of a vessel in the port and after berthing, the Containers are
unloaded under general supervision of the Customs Officers.
4.08.02
The Steamer Agent files IGM along with the list of Containers brought
by the vessel in the Import Deptt, which forwards it to the Container Cell/CMFC
where it is entered in the Shipping agent wise Container Register.
4.08.03
The Containers meant for clearance at the same port, are moved by
the Port Trust through authorised transporters to the nominated areas earmarked,
shipping agent wise, in the docks / outlying area of docks. The Preventive Officer
posted at the Gate shall verify as to whether the seals are intact and then allow the
Containers to move out of Docks to outlying areas of the docks. If the seal is broken /
tampered with the matter shall be reported to the Deputy/ Assistant Commissioner
(Docks) for necessary action.
4.08.04
On arrival of the Container the Preventive Officer posted at the storage
yard shall check whether the seals are intact and enter the particulars in a prescribed
register maintained at the Gate and allow the Container to enter inside the storage
yard. Discrepancy, if noticed, should be brought to the notice of Deputy/ Assistant
Commissioner (Docks) for necessary action.
4.08.05
In Container yards, as and when the importers / C.H.A. approach the
Port Trust authorities and Customs with Bill of Entry, the Container shall be
102
destuffed, the goods examined and cleared on payment of duty or on execution of
Bond for warehousing etc. as per usual procedures.
4.08.06
FCL Containers along with imported goods can also be permitted by
the Container Cell to be taken to factory premises of the importers, after Customs
examination and „out of charge‟.
4.08.07
The steamer agents / importers can store empty Containers in Private
storage yards for which no permission from Customs is required to be obtained.
Similarly empty Containers from private storage yards / Docks can be moved,
without permission from Customs, by Steamer Agents to Exporters‟ premises for
stuffing of Export cargo.
4.08.08
Importers should be allowed to clear the green channel Containers directly
from the port without transhipping to the Customs Area.
[Circular No.16/2005-Cus, dated 11.3.2005]
4.08.09
FCL Containers with cargo like metal scrap may be given facility of
house destuffing at the importers premises so that examination/verification of the
goods imported can be done by jurisdictional Central Excise officers with least
inconvenience and expense to importer. This is permitted subject to conditions on
consideration of requests made on case by case basis.
4.08.10
Movement of imported cargo including unaccompanied baggage by
Container/bonded truck from Airports /ACCs to ICDs/CFSs/ Airports/ACCs in
hinterland by road are also permitted by Commissioner of Customs. For this purpose
Commissioner of Customs will appoint the Airlines or their duly approved agents or
103
the Custodians of gateway Airport/ACCs or the Custodians of destination
ICDs/CFSs/Airports/ACCs as the Custodian of all cargos to be transhipped under
bonded cargo. The permit will be valid for one year from the date of issue initially and
shall be renewed every three year subsequently.
[Circular No. 61/2000-Cus, dated 13.7.2000]
4.08.11
In case of specific intelligence about mis-declaration of goods in the
IGM or availability of contrabands in the Container, it is clarified that the Containers
meant for transshipment can be examined only when there is a specific intelligence
about mis-declaration of goods in the IGM or availability of contrabands in the
Container. However, even in such cases, before detaining any such Container at the
gateway port, permission from Joint/Additional Commissioner shall be obtained in
writing.
[Circular 46/2002-Cus, dated 29.7.2002]
4.08.12
Stuffing of Containers with export cargo at the exporters‟ premises
shall be done under the supervision of Appraising staff (Customs) / Supdt. Central
Excise, as the case may be, and thereafter duly sealed by them. However, stuffing of
Containers with export cargo at the Customs Areas declared for this purpose in the
Docks and other places, shall be done under the supervision of the Preventive Staff.
4.09
4.09.01
Movement of Export Containers
Preventive staff posted in the Docks are required to verify the seals of
export cargo stuffed Containers received from ICDs, and allow shipment thereof if
the seals are found intact.
104
4.09.02
Export cargo stuffed in the exporters premises / factories under
supervision of Appraising staff (Customs) / Supdt. Central Excise, as the case may
be, or on self sealing basis will have to go to the respective port/ Pre-stage area/ any
CFS under the jurisdiction of the Commissionerate for verification of the seal,
document and entry of examination report in the System. In the case of self sealed
Containers the examination will be carried out as per instruction given by the System
and report entered accordingly by the Appraiser for generation of Shipping Bill for
granting LEO.
4.09.03
The Gate Officer posted at Dock shall verify seal is intact and note the
time of entry. If the Container reaches dock after the prescribed time limit (if any time
limit is mentioned in the Commissionerate‟s Public Notice) the same shall be brought
to the notice of Deputy/Assistant Commissioner (Docks) for further action.
4.09.04
Movement of export cargo after its clearance at the originating port
by rail to another port for export therefrom is allowed as per the procedure similar to
that being followed for movement of export cargo from the ICDs to gateway ports.
Thus, all Customs documentation and examination etc. will take place at the
originating port and after clearance, cargo will be stuffed and sealed in Containers in
the presence of Customs. Drawback and other import incentives are to be paid/
credited at the originating port. The documentation for movement of cargo from one
port to another by rail will be same as is being undertaken in case of movement of
cargo from ICDs/CFSs to gateway ports.
[Circular No.75/2001-Cus, dated 5.12.2001]
4.10
Procedure for Export of Container Cargo
from ICDs/CFSs to Bangladesh and Nepal through
LCSs
105
4.10.01
Exporters are required to
bring export goods to ICD/CFS and file six
copies of Shipping Bills (including two transference copies) alongwith documents like
GR Form, AR Form, certificates issued by Export Promotion Councils, etc. The
Shipping Bill will be assessed as usual, goods examined and samples drawn, if
required. After assessment, the original and duplicate copies of Shipping Bill alongwith two more copies (transference copies) and original GR Form are to be retained
at the ICD. The original GR form is to be forwarded to the concerned branch of
Reserve Bank of India.
4.10.02
Examination order will be given on duplicate and transference copies of
the Shipping Bill and examination report recorded thereon. The duplicate copy shall
be retained in the ICD/CFS and both transference copies forwarded to the LCS
through the carrier in a sealed cover along-with a copy of invoice, packing list and
other documents. After examination, the goods shall be stuffed and the Container
sealed with tamper proof bottle seal. The seal no. shall be recorded in the copies of
Shipping Bill and AR form. The copies of Shipping Bill and AR form shall be
endorsed with the examination and loading report with the Container no. etc. and this
shall be jointly signed by the Customs, Carrier and exporter‟s representative.
4.10.03
Carrier shall then transport the Containers by road or/and rail upto the
LCS. At the LCS, both transference copies of Shipping Bill shall be submitted to the
proper officer of Customs who shall inspect the Container seal and tally the seal nos.
with the Shipping Bill and record the same in the transference copies of the Shipping
Bill and the AR 4 form (as given below).
―Inspected and seals found intact, Seal Nos. found to tally with the shipping bill and
AR 4 form.
Name, signature and date‖
4.10.04
In case the Customs seal on the Container is found broken or
tampered with or some discrepancy found in the seal nos., the matter shall be
brought to the notice of the Deputy/Assistant Commissioner of Customs and such
106
Container shall be subjected to 100% examination.
4.10.05
In case the seal is found intact and the documents are in order, the
Proper Officer at the LCS shall endorse the transference copies of Shipping Bill with
“export allowed”. He may also endorse that the Container has been duly identified by
him and has crossed the border into Nepal/Bangladesh on both copies of Shipping
Bill and AR form at the time of actual export. One copy of the Shipping Bill may be
retained at the LCS and the other transference copy returned to originating ICD/CFS.
4.10.06
On receipt of transference copy of the Shipping Bill, the Customs at
originating ICD/CFS shall match it with duplicate copy of Shipping Bill to ensure the
goods have been exported. If the copy is not received within 90 days, the
Deputy/Assistant Commissioner of Customs at the originating ICD/CFS may raise a
demand on the Custodian equal to the export duty/Drawback in addition to any other
action that may be taken against the exporter. He may also intimate the DGFT and
RBI accordingly. The matter shall also be reported to the jurisdictional Commissioner
of Central Excise for recovery of Excise duties on the goods.
4.10.07
To ensure safety and security of
goods during transit to LCS, the
Custodians of the ICD shall furnish a bond with security as being done for movement
of cargo from ICDs/CFSs to the gateway port. The bond shall be debited for the
value of the goods every time a Container is given to carrier for transport and recredited once the proof of export is received.
4.10.08
The facility for movement of
export cargo from ICDs/CFSs to Nepal
and Bangladesh mentioned shall be available only if cargo is moved through LCSs at
Petrapole and Gede in Indo-Bangladesh border and Raxual in Indo-Nepal border.
[Circular No.18/2002-Cus, dated 13.3.2002]
4.11
International Transshipment of LCL Containers
at Indian Ports
107
4.11.01
Following factors may be considered by the Commissioner for
identification of the premises for international transshipment of LCL Containers:
(a)
Location of the premises.
(b)
Availability of infrastructure - modern
handling equipment
for
loading, unloading of Containers from rail flats, chassis, their
stacking, movement, cargo handling, stuffing/de-stuffing, refrigerated
storage facility for perishable cargo etc.
(c)
Availability of sufficient secured area for segregation/consolidation of
cargo and for its safe handling.
(d)
EDI connectivity with Custom House to handle the transshipment in
ICES.
(e)
Experience of Custodian in handling import export matters and
working knowledge of Customs Act, rules and regulations.
(f)
Logistics arrangements including constraints, if any, in movement of
Containers between approved place/premises and port.
4.11.02
Application for international transshipment of FCL cargo can be made
by master of the vessel or his authorized agent, Non-Vessel Operating Common
Carrier (NVOCC) or any other person duly authorized in this behalf by the foreign
supplier.
4.11.03
No goods for international transshipment should be unloaded from the
vessel until permission is given by the AC/DC authorized, on the basis of manifested
details in IGM.
4.11.04
ITP Container details such as Container Number, broad description of
goods etc. shall be mentioned in the IGM. For cargo movement, three codes, given
below, need to be filled correctly with proper port of destination.
(a)
„LC‟ - Local Cargo: This is the port code where cargo is delivered.
It is the same as the port of arrival.
(b)
„TC‟ - Transshipment Cargo: This refers to international cargo and
108
the port of destination shall be the port code where transshipment
cargo is destined to or delivered.
(c)
„TI‟ - Transshipment to ICD: This is the local cargo where the cargo
is meant for transshipment to hinterland port i.e. ICD (port of
destination is the port code of the ICD).
4.11.05
In the electronic manifest message, a field „Container Status‟ specifies
whether the cargo is FCL or LCL or Empty. The line and the sub-line numbers
provide the inter-linkage between the cargo details and the Container details.
Therefore, the EDI System in ICES can be used for Customs documentation and
processing.
4.11.06
Unloading of ITP Containers at gateway port would be in presence of
Customs Officers and the Containers taken to approved place/premises under
Customs escort. Custodians would provide a segregated secure space for ITP
Containers.
4.11.07
Customs Officers shall examine the seal of the ITP Containers. In case
of seal tampering, such Container should be immediately resealed with the Customs
Seal in the presence of the Custodian/Shipping agent and same should be recorded.
Such Containers will be examined 100% by the Customs Officers and put up to the
AC/DC for further action.
4.11.08
LCL Cargo meant for a foreign port would be de-stuffed in the
presence of Customs Officer and stored in a secured area provided by Custodian.
LCL Cargo may contain consignments meant for transshipment to any port outside
India or for home consumption or for transshipment to ICD. This would necessitate
segregation of the cargo at the time of de-stuffing and moving them to respective
storage areas under customs escort. Till such time, sufficient precaution should be
taken to avoid duplication/mixing up or manipulation of cargo meant for
Transshipment/Home consumption.
4.11.09
Whenever the LCL cargo are required to be exported to foreign
109
destination the re-stuffing along with the export cargo would be done under the
supervision of a Customs officer and Container sealed in his presence. Also, the
details of LCL Cargo would be entered in EGM.
4.11.10
Custodian would maintain the record of ITP LCL Cargo, both loaded
and unloaded, and submit a monthly summary to Customs. He shall execute a
general bond for an amount equal to the approximate value of goods expected to be
imported in 30 days for the purpose of international transshipment. In such bond,
Custodian should undertake to export transshipment cargo within 30 days or within
extended period as Commissioner may allow.
4.11.11
Custodian would be responsible for safe handling of the LCL cargo and
ensure that there is no intermixing of ITP LCL cargo with other cargo lying with the
Custodian.
4.11.12
International transshipment of cargo should be done within 30 days of
Entry Inward of the ship. Permission for transshipment would not be given to cargo
having arms, ammunition, explosives and other cargo constituting a threat to the
security/safety and integrity of the country and goods prohibited under Section 11 of
the Customs Act, 1962. However, goods „restricted‟ as per the Foreign Trade Policy
may be permitted for transshipment. Further, transshipment shall not be allowed to
any port/destination, in respect of which any order or prohibition is in force for the
time being. Commissioners may also prescribe additional safeguard for securing
safe transshipment. The provisions of Section 48 relating to the procedure in case of
goods not transshipped within 30 days after unloading shall apply to these goods.
[Circular No.14/2007-Cus, dated 14.3.2007]
4.12
Carriage of Coastal Cargo in Containers From
One Indian Port To Another Port in Foreign Going Vessels
110
4.12.01
Indian flag foreign going vessels operating in routes covering more
than one Indian port to a port outside India and vice versa are allowed to carry
coastal Containers along with imported/export cargo between two Indian ports. The
provisions of the Customs Act, 1962 relating to coastal cargo as also other statutory
provisions, guidelines and instructions in this regard shall apply to such Containers
and the procedure in this regard shall be as follows:
(a)
The consignor of any coastal goods in Container shall submit to the proper
officer the Bill of Coastal Goods in the prescribed form (in four copies). Such
Bill shall contain all the relevant particulars and the consignor shall subscribe
to a declaration regarding the correctness of the contents thereof. The proper
officer may, if satisfied with the declaration, order such examination as may
be considered necessary by him to satisfy that the declaration is correct and
then pass the Bill for Coastal Goods and return three copies to the consignor.
(b)
The Container containing such coastal goods shall be clearly painted with the
words “For Coastal Carriage Only” on all sides. After examination of the
goods is completed, the Container shall be sealed with tamperproof one time
bottle seal and then the same can be loaded on to the vessel.
(c)
The Master of the vessel shall not permit the loading of such coastal cargo
Containers unless the Bill of Coastal Goods duly passed along with the
permission of the proper officer to load the Container is received by him. On
receipt of the documents, the Master shall prepare a Coastal Manifest in
triplicate. A separate set of manifest shall be prepared for each coastal port
for which the vessel is carrying coastal cargo. The proper officer may, after
making necessary checks, make an endorsement on the manifest, retaining
one copy of the manifest and return the other two copies to the Master of the
vessel. The Master shall retain one copy as carrier‟s record and submit the
other to the proper officer at the destination port along with the Bill(s) of
Coastal Goods relating to the goods meant for that port.
(d)
Before any coastal Container is permitted to be loaded, the consignor or the
Master of the vessel/his agent shall execute a bond in such form with such
surety as the proper officer may decide, binding himself for an amount equal
to the value of the goods. The same shall be enforced if the coastal cargo is
not landed in India and is taken to a foreign port after the last Indian port of
111
call.
(e)
The Customs officer supervising the loading shall ensure that the particulars
of the goods are entered in the Advice Book to be carried by the Master of the
vessel in respect of such coastal cargo. The Master shall also carry one copy
of the Bill of Coastal goods with him and shall deliver the same along with the
Coastal Manifest to the Customs officer at the port of destination.
(f)
The Customs officer at the destination port may verify that the coastal
Container is unloaded at the intended port and make a remark to this effect in
the Advice Book.
(g)
The Master of the vessel may not be given permission for the departure of the
vessel unless it is established that the coastal cargo intended for that port has
been discharged and the seals of the Container are intact. In case the seals
are not found to be intact, the Customs officer may cause the Container to be
opened and permit the vessel to leave only if there is no discrepancy between
the contents of the Container and the Bills of Coastal Goods delivered by the
Master of the vessel. The proper officer may, however, permit the vessel to
leave if the Master or his Agent submits a bond with such surety or security as
he may consider necessary in respect of the Containers where the seals are
found to be tampered with.
(h)
The reconciliation of coastal Containers delivered with the Coastal Manifest
and the entries in the Advice Book shall be completed at the last Indian port of
call before the vessel leaves for foreign port. It shall be ensured that all
charges and penalties due in respect of that vessel have been paid or the
payment is secured by such guarantee or deposit of such amount as the
proper officer at the port of loading may direct.
(i)
In case of any tampering of seals or any discrepancy, the matter shall be
reported to the Deputy/Assistant Commissioner, who may adjudicate the
matter after issue of show cause notice. The procedures as applicable for
non-coastal cargo will apply mutatis mutandis to deal with such situation. A
quarterly report of such discrepancies shall be sent to the Board by the
concerned Commissioner.
112
[Notification No. 424/76-Cus.,(NT) dated 23.10.1976 and Circular No.15/2002-Cus,
dated 25.1.2002]
4.13
4.13.01
Proof of Export of Containers
As proof of export of the Containers, the Steamer Agents have to
submit a list of Containers shipped under one Port Clearance, to the Container
Cell/CMFC. The number of Containers so exported under one Port Clearance is to
be co-related to their imports under various IGMs by the various Steamer Agents.
Since this scrutiny of one Port Clearance with reference to several IGMs and
verification thereof Container wise involves time and effort, the Steamer Agents are
required to prepare and submit monthly statement of Containers exported Port
Clearance IGM wise, in the following proforma:
Statement regarding export of Containers during month of . . . . . . .
Particulars of total numbers of Containers (both loaded and empty) imported
by Vessel . . . . . . . . . . . . . . . . . . . .. . . . VOY . . . . . . . . . . . . . . . . IGM . . . . . . . . . . .
. dated . . . . . . . . . . . . . . and exported.
Sl.
Container
No.
Number
Size
Exported
by P.
Vessel*
C.
No.
and date.
Total number of Containers imported . . . . . . . . . . . . . . . . .
Total number of Containers exported till end of (month). . . . . . . . . . . . . . . . . .
Balance
..................
Bond file No.
113
Steamer Agents
(*Attach copy of EGM and list of empty Containers duly certified by Section
Officer/Boarding Officer).
(ii)
For empty Containers that do not figure in the EGM, the Customs Officers
shall certify the tally sheets of the Stevedores for the loading of empty Containers as
a proof of export. These will then be submitted to the Export Department with the
respective EGMs as proof of re-export.
4.14
Duties of the Preventive Staff Posted in
Container Cell/CMFC
4.14.01
Monitoring of import and subsequent export of the Containers is done
by the Container Cell/CMFC, which normally consists of Ministerial staff and
Preventive Officers, supervised by a Superintendent (Preventive).
4.14.02
Duties of Superintendent (P):
(i)
Processing of Bond documents for import of Containers
(ii)
Attending to correspondence with Steamer Agents
(iii)
Scrutiny of applications received for permission for taking Containers out of
Docks limit.
(iv)
Scrutiny of applications for Transhipment permissions and endorsing TP
permits and IGM/SMTP copies.
(v)
Attending to grievances of representatives of Steamer Agents regarding
difficulties in filing particulars of non re-exported Containers.
(vi)
Preparation of Show Cause Notices and adjudication records.
(vii)
Overall supervision of the staff and work in the Container Cell.
(viii)
Domestic clearance of Containers on payment of duty
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4.14.03
(i)
Duties of Preventive Officer:
Maintaining IGM-wise and Steamer Agents-wise register for import of
Containers.
(ii)
Posting of Port Clearance particulars of re-exported Containers in IGM
register.
(iii)
Taking out fresh balance of non-re-exported Containers for issuing
reminders/demand notices.
(iv)
Issuing reminders to Steamer Agents for accounting balance of imported but
non-re exported Containers.
(v)
Issuing Duty Demand Notices to Steamer Agents.
(vi)
Attending to correspondence with Steamer Agents.
CHAPTER - FIVE
115
5.
INLAND CONTAINER DEPOTS (ICDs) AND CONTAINER FREIGHT
STATIONS (CFSs)
Government has extended the facility of clearance of import / export goods at
the door step of importer/exporter by notifying Inland Container Deports (ICDs) and
Container Freight Stations (CFSs). These places are Customs Stations having a
requisite contingent of staff from Customs, Custodians, Security, etc., to effect the
clearances of import / export goods. Imported goods are brought into the ICDs /
CFSs, usually in containers, after the same have been duly allowed Transhipment at
the port/airport of Import, under Customs seal / escort and are received by the
Custodians. Similarly, the export goods are received into ICDs / CFSs by the
Custodians for clearances by the Customs.
5.01
Definition, Functioning and Benefits of ICDs and CFSs
5.01.01
Definition of ICD / CFS: An Inland Container Depot/Container Freight
Station is defined as a common user facility with public authority status equipped
with fixed installations and offering services for handling and temporary storage of
import/export laden and empty containers carried under customs transit by any
applicable mode of transport placed under customs control and with customs and
other agencies competent to clear goods for home use, warehousing, temporary
admissions, re-export, temporary storage for onward transit and outright export.
5.01.02
Distinction between ICD & CFS: An ICD is a place where containers
are aggregated for onward movement to or from the ports whereas CFS is a place
where containers are packed and unpacked and aggregation / segregation of cargo
takes place. An ICD may have CFS attached to it. ICDs are located outside the port
towns whereas no site restriction applies to CFS. ICDs are meant to provide facility
of port / airport at interim part of the country or closer to the importer/exporter as
possible. The CFSs are meant to remove the congestion at port / airport / ICDs/
ICDs are sanctioned by the Central Government and sanction for CFS is accorded
116
by the Jurisdictional Commissioner of Customs depending on the need considering
the work load and infrastructure facilities provided.
5.01.03.
Function of ICDs/CFSs:
(a)
Receipt and despatch of containerised cargo.
(b)
Truck operations.
(c)
Loading / Unloading of containers to and from trains.
(d)
Stuffing / destuffing, aggregation/de-aggregation of containers.
(e)
Customs clearance.
(f)
Gate checks and security.
(g)
Storage of cargo and containers.
(h)
Information flow and Communication.
(i)
Record keeping and data storage.
(j)
Billing and cash collection.
5.01.04 The operational centres of ICDs/CFSs (listed below) are those that relate to
the critical activities of handling and storage of import and export goods and
Containers.
The ICDs / CFSs are permitted to outsource / sublet /transfer of
operations to facilitate importers/exporters.
(a)
Siding: The place where containers are loaded and unloaded. Arrival and
despatch of trains etc. also takes place here.
(b)
Container Yard: The place where loaded and empty containers are stacked
prior to despatch by specified mode of transport or prior to delivery to the
customer.
(c)
Container Freight Station: The area where containers are packed and
unpacked and aggregation / segregation of cargo takes place.
(d)
Customs examination bay: The designated place where the containers are
placed for examination by Customs, separately for import and exports.
[F.No. 450/105/2008.Cus IV, dated 25.5.2008]
5.01.05
Benefits of ICDs/CFSs:
117
(a)
Increased trade flows.
(b)
Lower door-to-door freight rates.
(c)
Safety of cargo.
(d)
Avoidance of clearing and forwarding agent‟s fees at seaports.
(e)
Avoidance of storage, demurrage and late documentation fees.
(f)
Possible avoidance of the need to extend the period of marine insurance.
(g)
Optimal use of road and rail transport and better utilisation of capacity.
(h)
Benefits to seaports.
(i)
Inventory savings.
(j)
Improved communications, etc.
(k)
LCL export cargo can be aggregated / consolidated and carried to a hub for
repacking (carrier wise) in separate container for speedy clearance and
making transportation cost effective to smaller players. Also, same container
can be used to bring back consolidated LCL imports to ICDs/ CFSs.
(l)
Inter-CFS movement of containers/ trucks with LCL cargo under same
jurisdictional Commissioner allows optimum utilization of space in a
containers/truck.
[Circulars No.55/2000, dated 30.6.2000 and No.22/2001, dated 15.4.2001 and
F.No. 450/66/2005.Cus IV, dated 24.11.2005]
5.02. Guidelines for setting up ICDs / CFS
5.02.01 Format of Application for permission to set up an ICD/CFS:
1. Name of the Organisation proposing to set up ICD/CFS:
2. Status of the applicant Organisation
3. Place where the ICD / CFS is proposed and precise reasons for selection of the
site.
118
4. Location of the site with distance from
a) Nearest Highway
b) Nearest Railhead
c) Nearest Port
d) Nearest ICD/CFS
(Enclose a map showing location and modal links to ports)
5. Whether land for the setting up of ICD/CFS already acquired? If so,
a) Areas of land (in sq. mtr.)
b) Whether owned / hired / on lease;
c) If not, how the land is proposed to be acquired.
6. Name of jurisdictional Customs Commissionerate
7. Traffic Projections:
Commodity
Tonnes
TEUs
Export (existing / projected)
Import (existing / projected)
NOTE: Party-wise expected traffic of export / import containers (TEUs) separately to
be attached to the extent possible.
8. Names of the shipping lines, shipping agents, freight forwarders operating/willing
to operate
9. Lay-out plan of the proposed ICD/CFS:
a) Details of rail terminal facilities for receiving Container trains,
loading/unloading, stacking space for containers.
b) Covered areas separately for export / import / shut out / disputed /
hazardous cargo, office block, etc.
c) Open area for Containers Circulation / Yard: paved / unpaved
d) Gatehouse and security features (detailed lay out plan to be enclosed)
10. Infrastructural facilities (area in sq. meters) proposed to be provided:
119
a) Office accommodation for applicants staff;
b) Accommodation for custom staff;
c) Accommodation for shipping lines / agents.
d) Accommodation for bank;
e) Canteen
f) Computer
g) Weighing facilities.
h) Telephone / telex / FAX
i) Flood light / high mast towers for security; and
j) Public and staff conveniences / amenities like toilets, drinking water etc.
k) Fire fighting
l) Drainage / Sewerage;
m) Strong room for valuable cargo
n) Reefer plug points
o) Parking area for Lorries outside the facility.
11. Equipment (forklift, crane, trailer etc. to handle the containers and cargoes).
12. Estimated cost of the proposed project.
13. Experience / capability of the applicant in running the ICD / CFS, staff to be
employed with their experience and qualifications, responsibilities.
14. Financial status of the applicant organisation.
15. Movement logistics of containers between the proposed ICD / CFS and Gateway
port: Complete details to be provided.
16. Costing and proposed tariff.
15. Scope and plans for future expansion.
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NOTE: Customs Notification for the ICD / CFS will be issued only after infrastructure
and security arrangements are completed and necessary bond with bank guarantee
is provided.
5.02.02
Reduction in transport cost must outweigh any increase in handling
cost. Thus, a survey / feasibility study must precede setting up of ICDs / CFSs and
copy of the report should invariably accompany the application. Data for carrying out
analysis could be from secondary sources and field observations, structured over
time and space, the latter is more realistic. Views of exporters, shipping lines, freight
forwarders, port authorities, Commissioners of Customs / Excise etc., must be fully
reflected.
5.02.03
Traffic flow must be analyzed with reference to (i) commodities, (ii)
directional-split (imports / exports), (iii) proportions of LCL and FCL, (iv) modes of
transport available, and (v) possible reduction in tonnes per kilometers or Box per
kilometers costs.
5.02.04
The facility must be economically viable and attractive to users,
railways and other transport operations; seaports; shipping lines; freight forwarders
etc. on basis of certain minimum amount of traffic. Suggested minimum TEU figures
for approval are 6,000 TEUs per year (two way) for ICDs and 1,000 TEUs per year
(two way).
5.02.05
The design and lay out should ensure smooth flow of containers, cargo
and vehicles through the ICD/CFS. It should take into account initial volume of
business, estimated volume in 5/10 years horizon and the type of facilities exporters
would require. Broadly the design should encompass (rail) siding, container yard,
gate house, security features, boundary wall (fencing), roads, pavements, office
building and public amenities. The track length and number of tracks should be
adequate to handle rakes and for stabling trains where relevant. The perimeter
fencing and lighting must meet the standards required by Customs authorities. The
gate being the focal point of site security should be properly planned. The
administration building is the focal point of production and processing and
processing of all documentation relating to handling of cargo and containers. While
121
its size will be determined by the needs of potential occupants, the main core of
building may be open space capable of being partitioned into different sized offices.
Fixed provisions can be made for sanitation and possibly a food service. Finally, a
good communication system is a must.
5.02.06
A host of handling equipment of different kind and capacity is available
for loading, unloading of containers from rail flats, chassis, their stacking, movement,
cargo handling, stuffing destuffing and so on. The choice of equipment for the facility
will have a major impact on the overall design and effective working of the ICD/CFS
and should be carefully considered. Availability of adequate and – proper equipment
(owned, hired, leased) at the facility is an essential requirement.
5.02.07
Detailed tariff structure and costing should be worked out in advance
and information provided with the application.
5.02.08
The main function of an ICD/CFS being receipt, despatch and
clearance of containerised cargo, the need for an up-to-date inventory control and
tracking system to locate containers/cargo is paramount. Each functional unit of the
facility (e.g. siding, container yard, gate stuffing/destuffing area etc.) should have upto-date, and where possible on-line, real-time information about all the containers
etc. to meet the requirements of customers, administration, railways etc. This could
be through computers etc.
5.03
Procedure for approval of ICD/CFS
5.03.01
Proposals for setting up ICD / CFS will be considered and cleared, on
merits, by an Inter-Ministerial Committee, which consists of officials of the Ministries
of Commerce, Finance (Customs), Railways and Surface Transport. The proposals
will be examined keeping in view guidelines and norms mentioned above.
5.03.02
Application (eight copies) in enclosed form accompanied by copies of
feasibility reports mentioned in the guidelines should be submitted to the Joint
Director (Infrastructure Division) in the Department of Commerce.
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5.03.03
On acceptance of a proposal, a letter of intent will be issued to the
applicant who will enable it to initiate steps to create infrastructure.
5.03.04
After the applicant has put up required infrastructure, met the security
standards of the Commissioner of Customs and provided a bond backed by bank
guarantee to the Customs, final clearance and Customs notification will be issued.
The bond would be for a value equivalent to the value of cargo to be handled. Bank
guarantee would be for 20% of the value of bond.
5.03.05
The approval will be subject to cancellation in the event of abuse or
violation of the conditions of approval.
5.03.06
The working of the ICD/CFS will be open to review by the Inter-
Ministerial Committee and Customs Department.
[F. No. 434/12/92-Cus-IV, dated 5.6.1992]
5.04
Setting up CFSs
5.04.01
A CFS may handle exclusively export cargo or import cargo or both.
Generally, CFS is taken to be an extended arm of the Port / ICD / ACC. Depending
upon its importance and volume of work it handles, it functions like a full-fledged
Customs station wherein the admission, processing and completion of all customs
procedures are done. Alternatively, the processing of the Customs clearance
documents is done in the Custom House and the CFS functions like „Docks‟ where
the examination and sealing of export cargo or examination and customs clearance
of import cargo is done. Thus, depending upon the location, workload and other
related factors; Commissioners of Customs can devise the Customs work in such
CFS.
5.04.02
Commissioners of Customs are authorised to notify a CFS as a
Customs area under Section 8 of the Customs Act in any place declared by the
Central Government as a Customs station under section 7 of the Customs Act.
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However, before declaring a CFS, the Commissioners may assess the requirements
of such facility in each Port / ICD / ACC for creation of such additional Customs area
(CFS). If need be, the Commissioners may discuss such feasibility in the Regional
Advisory Committee Meetings or meetings with the Trade. Commissioners are
advised, however before notifying any new CFS as Customs area in a Customs
Station, they should call for the proposals by wide publicity and grant such facility
only after fully satisfying themselves on the need, security, credibility of the persons
concerned, suitability of the condition and other details of the applicant.
5.04.03
Proposals for CFS are processed in the Ministry of Commerce when
applicants make proposals to the Ministry. As and when such proposals are cleared
and communicated to the Board, Commissioners are required to notify it under
Section 8 of the Customs Act, as early as possible, after ensuring suitability and
other criteria for such declaration.
5.04.04
A CFS may be notified as a Customs Area in the Public/Joint/Private
Sector. However, before notifying such Customs area, the following guidelines may
be noted.
(a)
There should be judicious mix of Public and Private Sector undertakings to
provide an element of healthy competition leading to greater efficiency and
cost effectiveness in management and operation of such ICDs / CFSs.
(b)
If at any station PSU has already been appointed as a Custodian to operate a
CFS / ICD, the next facility may be given to a joint sector / Private Sector and
vice versa.
(c)
Financial standing and antecedents of the organisation should be verified.
(d)
The selection of custodians to operate CFS / ICD may be made by the
Commissioners stationed at the city in consultation with Regional office of
DRI, and by constituting a committee of officers from the Commissionerate
and or from the trade and other interests.
(e)
To project an image of fairness, the Commissioner may invite request for
opening CFS / ICD through a Public Notice.
(f)
The Commissioner may dispose of the case of Public Sector Undertakings
themselves and the cases of Private Sector after confirmation by a Committee
to be constituted as indicated above.
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5.05
Guidelines on Undertaking to be Given by Custodians
5.05.01
The Custodian shall undertake to provide necessary infrastructure
facilities, ensure safety and security of the cargo at the ICD/CFS, provide facilities for
Customs staff etc. as given below:
(a)
Custodian shall provide safe, secure and spacious premises for loading
/unloading/ sorting of the cargo. The infrastructure for loading/unloading/storage
operations should be designed to handle a minimum traffic of at least 10 TEU per
day (two-way). The premises should be so designed that there should be provision
for expansion of storage space, office accommodation, handing space, etc. for a
period of 10 years.
(b)
Custodian shall provide sufficient modern handling equipment in operational
condition for handling the containers and cargo in the area;
(c)
No alteration of the plan in the accommodation, boundary wall and building,
etc. shall be made without the concurrence of the Commissioner of Customs;
(d)
Insurance of all goods held in the ICD/CFS shall be made by the Custodian;
(e)
Custodian shall abide by all the rules and regulations under the Customs Act;
(f)
For proper discharge of the duties, the Custodian shall execute a bond equal
to the average duty involved on the goods likely to be stored in the premises for a
period of 30 days, supported by bank guarantee or a Government bond or cash
deposit equivalent to 10% of such duty. However, all Central Government and State
Government Undertaking shall be exempt from the requirement of furnishing bank
guarantee or cash deposit.
(g)
ICD;
Custodian shall bear the duty on the goods lost or pilfered from the CFS /
125
(h)
Custodian shall give separate bond with sufficient bank guarantee of the value
of the bond towards the duty element of the Export goods transported from the
customs area to the gateway port/any other customs area for export/; transshipment.
Custodian would also be held responsible for the duty and for other penalties
leviable for the goods lost during transshipment from the said customs area to the
gateway port/other customs area;
(i)
Security of the premises shall be the responsibility of the Custodian subject to
the prior approval of the Commissioner of Customs of the arrangements. The cost
for the security has to be borne by the custodian;
(j)
Custodian shall bear the cost of the Customs staff, posted for the ICD / CFS /
EPZ. The Commissioner of customs shall decide the number of staff which is
required to be posted in the facility considering the workload in the station. (The
financial sanction for creation of requisite number of cost recovery posts should
precede the notification of ICDs / CFSs by the Commissioner).
(k)
Custodian shall provide free furnished office space for the Customs
Department;
(l)
Residential accommodation for the customs staff posted in the area shall be
provided for by the custodian, wherever requisitioned by the Commissioner of
Customs;
(m)
Free suitable transport from the nearest railway-head or suitable point shall be
provided for the customs staff by the custodian;
(n)
In the ICD / CFS the Custodian shall make adequate arrangements for
sanitary facilities, water supply and other allied facilities, including canteen facility, for
the officers working in the area;
(o)
Custodian shall not charge any rent/demurrage on the goods detained by
Customs Department under the Customs Act or any other Act for the time being in
force. However, the Customs Department shall pay the rent to the Custodian after
126
the ownership of the goods vests in the Government after confiscation. The rate of
rent for such goods shall be fixed by the Commissioner in consultation with CPWD or
local Revenue or Rent Control authorities;
(p)
In case the Custodian wants to sublet any of the functions inside the customs
are or connected with the customs area, the same should be done with prior
approval of the Commissioner of Customs and the Custodian shall remain
responsible for the omissions and commissions of the said agency;
(q)
Duration of the appointment shall initially be for 5 years subject to the
satisfaction of the Commissioner of Customs who shall have the right to terminate
the right to terminate the appointment at any time after assigning specific reasons
and giving an opportunity for the Custodian to explain his case. The appointment
shall be reviewed every 5 years.
(r)
The
Custodian
should
provide
adequate
infrastructure
for
their
computerization and link with Customs EDI at such ICDs / CFSs.
[Circulars No. 128/95, dated 14.12.1995, No. 34/2003-Cus, dated 24.4.2003
and No. 37/2003-Cus, dated 28.4.2003]
5.06
Grant of Custom House Agents Licence to Multi-modal Transport
Operators
5.06.01
Multi-modal Transportation of Goods Act, 1993 governs carriage of
goods from India to any place abroad by more than one mode of transport i.e.
basically it is concerned with the operations concerning export of goods from India.
Any person appointed by the Ministry of Surface Transport or any other agency
under it as a Multi-modal Transport Operator is only for the purposes of the said Act
and any such appointment does not confer any rights for his appointment as a
Custom House Agent or Steamer Agent for the purpose of Customs Act, 1962.
127
5.06.02
Permission for de-stuffing or stuffing of containers to Multi-modal
Transport Operator is to be granted only by the Custodians i.e. Port Trust or IAAI or
others. For this purpose the normal practice of the Custodian is to take security
clearance from Customs for the person(s) to whom they issue passes and the
Custom House needs to verify whether the person has come to adverse notice,
which is detrimental to allowing handling of cargo. Otherwise, Customs have no
status to deal with such kind of operators. Further, handling cargo would not entitle
him to any of the privileges to become a CHA or a Steamer Agent unless otherwise
qualified in terms of the Customs House Agents Regulations or other provisions of
the Customs Act, 1962. The role of a CHA is to be distinguished from the role of a
container handling agent or a Multi-modal Transport Operator or a cargo agent
dealing with Import cargo.
[Circular No. 72/95-Cus, dated 22.6.1995]
5.07
Declaration of ICDs and CFSs
5.07.01
Notification No. 15/95-Cus (NT), dated 10.3.95 is a consolidated
notification listing places appointed by the Central Government as ICDs under
Section 7(aa) of the Customs Act, 1962. However, appropriate notification as per
Section 8 of the Customs Act, 1962, may be issued specifying the exact location and
purpose of the ICD or of the CFS attached to the said ICD.
5.07.02
Movement of cargo cleared by Customs at the ICD for export may be
either by road or by rail at the discretion of the Custodian. For this purpose, the
Custodian will be required to execute a bond with Deputy/Assistant Collector of
Customs in charge of the ICD which will act as revenue safeguard should the goods
be lost in transit.
5.07.03
When the ICDs/ports are serviced by CFSs, the movement of export
cargo to the ICD may be by road or rail as per option of Custodian of the CFS. The
Custodian would be required to execute a suitable bond with the Deputy/ Assistant
Commissioner of Customs in charge of the ICD, which will act as a revenue
safeguard should goods be lost in transit.
128
[Circular No. 77/95-Cus, dated 30.6.1995]
5.08
Working of Customs Staff in ICDs / CFSs
5.08.01
ICDs /CFSs are enclosed and guarded places notified under Section 7
of the Customs Act, 1962, as Customs Stations.
Accordingly, requisite staff
comprising of Appraisers, Examiners, Superintendents Customs / Central Excise,
Inspectors of Central Excise, Preventive Officers, Group D Staff, Ministerial Staff,
etc., from the jurisdictional Commissionerate of Customs and Central Excise are
posted here to attend to the work of clearance of imported/export goods.
The
deployment and duties of the Customs Staff are akin to those prevalent in Docks or
Air Cargo Complexes.
5.08.02
Import cargo, in containers or otherwise, are applied for to be
transshipped to ICD/CFS, at the Port/Airport of import by the Shipping
Agents/Importers and then carried to the ICD/CFS by rail/road/air and received there
by the Custodians. Usually All the obligations/controls under provisions of the
Customs Act, 1962 are applicable to such ICD/CFS and goods handled therein. Bill
of Entry and other documents are filed with the jurisdictional Commissionerate of
Customs and Central Excise and clearance procedure is similar to that of goods
imported at the Port / Airport.
5.08.03
On the Export side, the goods are entered in ICD/CFS for the purpose
of examination/Inspection and clearance by the Customs. Shipping Bill and other
related documents are filed and processed in the jurisdictional Commissionerate of
Customs and Central Excise and thereafter the export goods are carted into the
ICD/CFS. After usual inspection/examination, like in Docks/Air Cargo Complex, of
goods by the Customs, the same are cleared for export. So passed export goods are
then either stuffed into containers under Customs supervision or directly moved to
the point of export under Customs escort/seal where these are loaded on the
vessel/aircraft/vehicle for onward carriage to the port of destination.
Duties and
functions of the Customs staff on the export side of ICD/CFS are similar to those of
such staff posted at Docks/Air Cargo Complex. Further, It shall be duty of the gate
129
officer posted at ICD/CFS to ensure that container move into or out the CFS / ICD
only under seal.
[Note: For clearance procedures at ICDs/CFSs with EDI facility please refer to
Chapter „Electronic Data Interchange‟ of this Manual].
5.09
Handling of Cargo in Customs Areas Regulations
5.09.01
Handling of Cargo in Customs Areas Regulations, 2009 deals with the
matter of handling import/export and transhipment cargo in a Customs area. Thus,
cargo can be handled in a Customs Area only by persons recognized as Customs
Cargo Service Provider (CCSP) for which they must obtain a valid Letter of Approval
given by the Inter-Ministerial Committee of the Ministry of Commerce or any other
Government Body set up for this purpose. The application for the same is to be
made in the form below.
Existing Custodians dealing with import/export goods are
also required to make an application in the said form.
–
Form
[see
regulation
A
9
(1)]
To
The Commissioner of Customs,
…………………………… (Address)
Subject: Application Form for approval / renewal of Customs cargo service provider
130
under the Handling of Cargo in Customs Areas Regulations, 2009 issued under
Section 141(2) of the Customs Act, 1962 (52 of 1962).
***
Sir / Madam,
I/we, the undersigned hereby submit the following details for approval as a
Customs cargo service provider under the Handling of Cargo in Customs Areas
Regulations, 2009:
1.
Name and address of the Applicant in full (Block Letters) :-
(a) Name of the Applicant_________
(b) Full Address (Registered Office, in case of limited Companies & Head Office for
others) ____________
(c) Tel. No.________
(d) Fax No.________
(e) Permanent E-Mail Address _____________
(f) Name and address of each of the Directors/Partners/ Promoters, as the case may
be ___________
2.
Nature of the applicant Firm or Company:
(a) Public Limited Company
(b) Private Limited Company
(c) Proprietorship
131
(d) Partnership
(e) Others (please specify)
Note:-
Copy of certificate of incorporation along with Article of Association and
Memorandum in case of companies and partnership deed in case of partnership
firms may please be attached.
3.
Extent of the proposed premises, giving details of area allocated for
unloading / loading, operational and stacking area, storage area, delivery, Customs
Automated System, Customs office premises, service centre, other user agencies
etc. (Map to be provided).
4.
Whether the applicant holds a valid Letter of Approval given by the Inter-
Ministerial Committee of the Ministry of Commerce or any other Government Body
for setting up of Customs cargo service facility at the premises applied for? If so,
provide details thereof.
5.
Projected capacity of the cargo / container proposed to be handled in the
proposed premises.
6.
Details of infrastructure and equipment put in place for handling of cargo in
the proposed premises. (Details to be given separately for loading / unloading,
stacking, storage and delivery).
7.
Details of security system installed for entry / exit of cargo and other safety
and security measures.
132
8.
Details of electronic weigh bridge, other weighing, measuring devices.
9.
Details of the computerized system put in place for location of cargo /
container, processing of documents.
10.
Whether any exemption from payment of cost recovery charges for posting of
Customs officers is claimed. If so, furnish the details of the order issued in this
regard by the Ministry of Finance.
11.
Whether the applicant is already functioning as Customs cargo service
provider. If so, details of the premises along with the respective jurisdiction of the
Commissioner of Customs.
12.
Whether the applicant had earlier applied for approval to act as Customs
cargo service provider and whether such application was approved / rejected:-
(i)
within the jurisdiction of the Commissioner of Customs to whom
application has been made;
(ii)
outside the jurisdiction of Commissioner of Customs referred at (i)
above.
13.
Whether the applicant has been penalized, convicted or prosecuted under
any of the provisions of the Customs Act, 1962 (52 of 1962) or any other law for the
time being in force. (If so, the details thereof).
133
14.
If the application is for renewal, details of original approval granted under
regulation 9, along with the date of its expiration or the date of last renewal of such
approval.
15.
List of documents furnished along with this application.
16.
Declaration:
I am / we are authorized to make the following declarations:
I / We declare that all particulars given herein are true and correct.
I/We hereby affirm that I/we have read the Handling of Cargo in Customs Areas
Regulations, 2009 and agree to abide by them.
I/We hereby undertake to intimate any change in respect of the information provided
in the aforesaid application within a period of 30 days.
Date:
Signature and name of the applicant(s)
or authorised signatory
Place:
134
5.09.02
An applicant interested in being recognized as a CCSP must fulfill
certain requirements and provide certain facilities that include the following to the
satisfaction of the Commissioner of Customs:
(i)
Infrastructure, equipment and adequate manpower for loading, unloading,
stacking, handling, stuffing and de-stuffing of containers, storage, dispatch and
delivery of containers and cargo etc., including:
(a)
standard pavement for heavy duty equipment for use in the operational and
stacking area;
(b)
building for Customs office, Customs EDI Service Centre and user agencies
with basic amenities and facilities;
(c)
storage facility, separately for imported, export and transshipment goods;
(d)
gate complex with separate entry and exit;
(e)
adequate parking space for vehicles;
(f)
boundary wall;
(g)
internal service roads;
(h)
electronic weigh-bridge and other weighing and measuring devices;
(i)
computerized system for location and accountal of goods, and processing of
documents;
(j)
adequate air-conditioned space and power back up, hardware, networking
and other equipment for secure connectivity with the Customs Automated system;
and for exchange of information between Customs Community partners;
(k)
facilities for auction, including by e-auction, for disposal of uncleared,
unclaimed or abandoned cargo;
(l)
facilities for installation of scanning equipment;
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(m) security and access control to prohibit unauthorized access into the premises,
and
(ii)
Safe, secure and spacious premises for loading, unloading, handling and
storing of the cargo for the projected capacity and for the examination and other
operations as may be required in compliance with any law for the time being in force;
(iii)
Insurance for an amount equal to the average value of goods likely to be
stored in the customs area based on the projected capacity, and for an amount as
the Commissioner of Customs may specify having regard to the goods which have
already been insured by the importers or exporters.
5.09.03
The applicant shall undertake to bear the cost of the Customs officers
posted, at such Customs area, on cost recovery basis, and make due payments,
unless specifically exempted by the Government;
5.09.04
The applicant other than ports notified under the Major Ports Act, 1962
or the Central Government or State Governments or their undertakings shall execute
a bond equal to the average amount of duty involved on the imported goods and
10% of value of export goods likely to be stored in the customs area during a period
of 30 days and furnish a bank guarantee or cash deposit equivalent to 10% of such
duty:
5.09.05
The applicant shall execute a separate bond for an amount equal to
10% of value of export goods with a bank guarantee for an amount equal to 10% of
the value of the bond, towards the export goods transported from the Customs area
to any other Customs area for export or transshipment;
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5.10
Responsibilities of Customs Cargo Service Provider (CCSP)
5.10.01
CCSP is responsible for the safety of the imported/exported goods in
his charge and for this purpose is required to undertake the following activities
(unless specifically exempted):
(a)
Keep record of imported/export/transshipment goods and also of each activity
or action taken in relation to their movement or handling and produce the
same to the proper officer as and when required;
(b)
Display or make available information of process or movement or handling of
imported/ export/ transhipment goods;
(c) Demarcate areas for loading/unloading of export/imported goods, for their
storage with respect to the category of exporters/importers, nature of goods,
destination, mode of transportation etc. as the Commissioner of Customs may
specify;
(d)
Not permit goods to be removed from the Customs area, or otherwise dealt
with, except with the written permission of the proper officer;
(e)
Not permit export cargo to enter the Customs area without a Shipping Bill or a
Bill of Export having been filed;
(f)
Not permit import cargo to enter the Customs area or be unloaded therein
without the import report or IGM having been filed;
(g)
Be responsible for safety and security of imported/export goods and be liable
to pay duty on goods pilfered after entry;
(h)
Be responsible for secure transit of the goods to any other Customs area in
accordance with the permission granted by the proper officer;
(i)
Subject to any other law in force not charge rent or demurrage on the goods
seized or detained or confiscated by the proper officer;
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(j)
Dispose off in the manner specified and within a time limit of 90 days (or
period extended by Commissioner of Customs), the imported or export goods
lying unclaimed, uncleared or abandoned:
(k)
Not alter the entry or exit points or boundary wall without the permission of the
Commissioner of Customs;
(l)
Bear the cost of the Customs officers posted on cost recovery basis unless
exempted by the Ministry;
(m)
Observe the Central Government holidays as followed by the jurisdictional
Customs formations and in case of any variation in the working days, intimate
the same to Commissioner of Customs and the trade, at least 7 days in
advance, and
(n)
Publish and display the schedule of charges for the various services provided
in relation to the imported goods or export goods.
(o)
Not lease, gift, sell or sublet or in any manner transfer any of the premises in
a Customs area; or sub contract or outsource functions permitted or required
to be carried out by him to any other person, without the written permission of
the Commissioner of Customs.
5.11
Approval of a CCSP and Commencement of Operations
5.11.01
Where the Commissioner of Customs is satisfied that the applicant has
fulfilled the prescribed conditions he may approve the applicant as a CCSP for a
period of two years. Existing Custodians are deemed to be approved as CCSPs for
five years from the date of compliance with the regulations.
5.11.02
The CCSP‟s approval shall be reviewed by the Commissioner of
Customs before the expiry of two years or five years, as the case may be, and he
may be extend such approval for further five years at a time.
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5.11.03
The CCSP shall not commence any operations for the first time unless
the Commissioner of Customs grants permission by a written order. Further, the
Commissioner of Customs may regulate the entry of goods in a Customs area for
efficient handling of goods.
5.11.04
The Commissioner of Customs may on application made by the CCSP
before the expiry of the validity of the appointment, renew the approval for a further
period of 5 years if the performance is found to be satisfactory.
5.12
Suspension or revocation of approval for appointment of a CCSP
5.12.01
The Commissioner of Customs may suspend or revoke the approval
granted to the CCSP and order for forfeiture of security, if any, for failure to comply
with any of the provisions of the Act and the rules, regulations, notifications and
orders. For this purpose he shall issue a written notice to the CCSP stating the
grounds on which it is proposed to suspend or revoke the approval.
5.12.02
The CCSP shall submit within 30 days or extended period its defense
to the nominated Deputy/Assistant Commissioner of Customs who shall decide the
matter on basis of available evidence including personal hearing, if required, and
prepare a report recording his findings.
5.12.03
The Commissioner of Customs shall furnish to the CCCSP a copy of
the Deputy/Assistant Commissioner of Customs report and require it to submit within
30 (or more days) any representation against the findings before passing suitable
orders.
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5.12.04
Penalty on a CCSP contravening or abetting or failing to comply with
any provision of the regulations shall extend to Rs.50,000/-.
[Notification No. 26/2009-Cus (NT), dated 15.3.2009]
*****
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CHAPTER – SIX
6.
IMPORT CLEARANCE PROCEDURES
6.1.
PRELIMINARY:
The provisions relating to Customs clearance of imported goods and Export
goods have been outlined in Chapter VII of the Customs Act, 1962. However, the
provisions of that chapter do not apply to the baggage and goods Imported /
Exported by post, as special provisions therefor has been made under the Customs
Act.
The provisions regulating the Arrivals / Departures of the conveyances
carrying Imported / Export goods and unloading / loading of the same have been
discussed in the previous Chapters of this Manual.
This Chapter of the Manual deals with the provisions for clearance of
Imported goods. Section 45(1) of the Customs Act, 1962, prescribes that all imported
goods shall remain in the custody of the person approved by the Commissioner of
Customs for this purpose, until they are cleared
for home consumption,
warehousing or transshipment. Sub-section (2) of the Section 45 of the Act
mandates that, the custodian of the goods shall keep an account of the goods
received by them and shall furnish a copy thereof to the proper officer. Also, the
custodians shall not remove or deliver the said imported goods unless the proper
officer has issued a written order to that effect.
Section 45 (3) of the Customs Act, 1962, outlines an important provision that if
any imported goods are pilfered after unloading thereof in a customs area while in
the custody of the person referred to in Section 45(1) of the Act, that person shall be
liable to pay appropriate duty on such goods.
Once the unloading of the Imported goods is complete, the same are taken
charge of and remain in the custody of the Port / Airport authorities pending
examination and clearance by the Customs authorities. Similarly, the Export goods
are also kept in or near the Port / Airport premises for Customs clearance before
export.
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The procedures involved in the clearance of Imported goods for home
consumption or other wise, and of Export goods, is of vital importance as this entails
the process of collection of revenue and implementation of Customs laws- especially
the assessment of goods and collection of Customs duty, verification of importability
/ exportability of goods and procedures prescribed therefor as per the Export / Import
policy in force.
6.2.
IMPORTED GOODS
As per the definition in Section 2(25) the Customs Act, 1962, imported goods
means any goods brought into India from a place outside India but does not include
goods which have been cleared for home consumption. So, any goods which are
brought into India (including the territorial waters of India) become imported goods
and on which duties of Customs are leviable.
The imported goods usually fall into four broad categoriesa ) those which are intended for home consumption i.e. to be used
within the country
either for sale or for manufacture of other
goods, and,
b ) those intended for warehousing.
c) those intended for Transhipment to any foreign port or other Indian
ports, and
d) which remain on board for transit to other stations in the same
conveyance.
6.3.
IMPORT CLEARANCE
In these paragraphs, the clearance of imported goods for home consumption
have been discussed. The subject of clearance of goods imported for warehousing,
goods in transit or transhipment has been dealt with in the respective Chapters of
this Manual.
The broad procedure for clearance of imported goods through Customs is
outlined below :-
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6.4.
Broad procedure for clearance of Imported Goods
After the imported goods have been unloaded and taken charge of by Port /
Airport authorities- acting as custodians, the Steamer Agents or Freight Agents
intimate the consignees of the arrival of their goods. A Bill of Lading / Delivery Order
is issued by them to the consignees after collecting requisite dues.
The importer of the goods, on receipt of the intimation & the required
documents from the Steamer Agents / Freight Agents, present a Bill of Entry, either
himself or through authorised Custom House Agents, to the Import department of the
Custom House. The receiving clerk in the Import department assigns a running serial
no. with date to the Bill of Entry and then passes it on to the Noting clerk. The Noting
clerk compares the particulars declared in the Bill of Entry with the corresponding
details in the Import Manifest and verifies the required licences, if any, as produced.
He then enters the importer‟s details against the corresponding entry in the Import
Manifest and Import Manifest No. & other details in the Bill of Entry.
Thereafter, the importer presents the Bill of Entry to the concerned Group of
the Appraising Department in the Custom House for assessment. The Appraising
Groups in the Custom House are formed on the basis of commodities as described
in different Chapters of the Import Tariff of the Customs Tariff Act, 1975.
In the Appraising Group, the concerned Appraiser scrutinizes the Bill of Entry
in relation to statistical requirements, classification of goods, rate of duty applicable,
correctness of value and quantity declared, etc., vis-à-vis invoices and other
documents submitted along with the Bill of Entry and gives an order on the Bill of
Entry to the field staff for any physical examination or drawing of any samples for the
purpose of assessment.
There are two kinds of orders for physical examination of goods etc. which
can be a ) before payment of duty, called First Check procedure, and,
b ) after the payment of duty, called Second Check procedure.
a ) First check – In this method, the Group Appraiser, after scrutiny of the Bill of
Entry and other related documents, passes an order on the Bill of Entry for physical
inspection / examination, weighment, drawing of samples, etc., of goods, in order to
determine the classification, value, etc., of the same. The Bill of Entry is then taken
143
to the Shed Appraiser, where the imported goods have been stored, who, in
compliance of the order, examines the goods with the help of Examiners. The Shed
Appraiser puts his examination report on the Bill of Entry and it is referred back to
the concerned Group in the Custom House. The Group Appraiser, in the light of the
report of the Shed Appraiser, completes the assessment and the Bill of Entry is
handed over to the importer for payment of duty in the Cash Department. After the
duty is paid and other requirements are met an “out of charge” order is endorsed on
the Bill of Entry by the concerned Group Appraiser. Thereafter, the Bill of Entry with
„out of charge‟ order is submitted to the Port / Airport authorities who give the
delivery of the goods to the importer or his agent and the goods are removed out of
Port / Airport premises through approved Gates.
b) Second check – In second check procedure, the Group Appraiser, after
scrutinising the B/E and other documents assesses the goods and determines the
duty payable, on the basis of declarations made and the importer is allowed to pay
the duty so assessed. The Group Appraisers then forward the B/E to the Shed
Appraiser with an order for physical examination / inspection of the goods, etc.,
thereon.
The Shed Appraiser thereafter, examines / inspects the subject goods in
accordance with the orders endorsed by the Group Appraiser and gives his report on
the Bill of Entry. If no discrepancy is found, the Shed Appraiser gives an „Out of
Charge‟ order on the Bill of Entry and then the goods are removed from Port / Airport
premises.
If any discrepancy is found in the particulars of the goods in relation to the
declarations made, the Bill of Entry is referred back to the concerned Group,
alongwith Shed Appraiser‟s report, for further action.
More often than not, the Clearance of imported Goods is resorted to the
Second check method in order to avoid delay.
Now a days in most of the Custom Houses, the records of details mentioned
in the Bill of Entry and various other endorsements made on it are recorded and
maintained electronically in various sections of Custom House.
Further, almost all the Custom Houses have now been equipped with the
necessary infrastructure to process the Bill of Entry and other documents/procedures
144
electronically, for the clearance of imported goods. The same has been discussed in
the Chapter “ Electronic Data Interchange “ of this Manual.
6.5.
The Bill of Entry
As discussed in the earlier paras, the Bill of Entry is the most important
document in the process of clearance of imported goods from the admission stage till
final clearance stage.
The Bill of Entry is the single document that initiates the procedure for
clearance of Imported goods and passes through various sections of the Custom
House and the Docks, in the process. It contains not only the declarations, made by
the importer but also various observations, notings, reports, etc., on it made in
different sections of the Custom House and Docks.
Section 46 of the Customs Act, 1962, makes it mandatory for the importer of
any goods, other than goods in transit or for transshipment to file a Bill of Entry for
clearance of goods for home consumption or warehousing.
The other provisions envisaged in this Section are –
(i)
A Bill of Entry under this Section may be presented at any time after the
delivery of the Import Manifest or Import Report.
(ii)
The Commissioner of Customs is empowered to permit in special
circumstances the presentation of a Bill of Entry even before the delivery of
the Import Manifest. This may facilitate quick clearance of goods even if the
vessel‟s Agent has been negligent in not presenting the Manifest promptly.
(iii)
The particulars to be mentioned in a Bill of Entry have not been specified in
the clause but will be prescribed in the Regulations.
(iv)
Except where the proper officer so permits, a Bill of Entry shall be for all the
goods included in the relevant Bill of Lading. Since an importer is required to
make a true declaration, he cannot at the same time be asked to make a
declaration which corresponds with what is contained in the Import Manifest,
over which he has no control.
(v)
As per amendment brought by Section 8 of Finance Act of 1995 in subsection (3) of Section 46of the Customs Act, 1962, the Bill of Entry can now
be noted 30 days in advance before the delivery of Import General Manifest.
The period has been increased from 7 days to 30 days considering the
145
development of EDI and new liberalisation policy. This amendment has been
brought in order to decrease the port congestion and to facilitate quick
clearance on arrival of the goods.
(vi)
Sub-clause (4) of the Section 46 requires the importer to produce the invoice,
if any, in support of the particulars furnished by him in the Bill of Entry.
(vii)
Sub-clause (5) permits the proper officer of Customs to allow substitution or
supplementation of the Import Manifest if the interest of revenue is not
prejudicially affected and if there was no fraudulent intention.
(viii)
This section along with Section 15 quantifies the liability for payment of duty
on imported goods. The crucial date for this purpose is the date on which the
Bill of Entry is presented.
The assessment under the Customs Act is governed by Section 12
which is the charging Section for the Customs Duties on goods Imported into
or Exported from India. The valuation of the goods is accepted in terms of
Section 14. Hence, Section 46 is a procedural Section requiring filing of Bill of
Entry for assessment. The duty on such Bill of Entry is calculated in terms of
Section 15. Therefore, Section 15(1) (a) links with Section 46 for date of
determination of rate of duty and tariff valuation of imported goods. Reading
the two Sections together, the rate and date of determination of duty on goods
entered for home consumption is decided which is the date on which a Bill of
Entry is filed under Section 46. Further the exchange rate for the purpose of
calculation of CIF value is taken on the date of filing Bill of Entry under section
46.
6.6.
Advance Notice of Bill of Entry before delivery of I.G.M.
Kindly refer to the amended provisions of Sec. 46(3) of the Customs Act, 1962
which provide that Bill of Entry may be presented even before the delivery of Import
Manifest, if the Vessel or Aircraft by which the goods have been shipped for
importation, is expected to arrive within 30 days from the date of such presentation.
2.
The Custom Houses were not clear about the procedure to be followed in
case of advance Bill of Entry. The matter was examined in Board in consultation with
Commissioners in Conference and representatives of Federation of Freight
Forwarders Association, Mumbai Custom House Agents Association and Air Cargo
146
Agents Association. Board had decided that the following procedures may be
followed in this regard.
3.
The importers desirous of availing the above facility should submit application
alongwith the advance Bill of Entry (five copies) to the Import Department. The 5th
copy (additional copy) will be called Advance Noting copy. Alongwith Advance Bill of
Entry the importer/CHA will produce copy of Bill of lading/AWB and invoice issued by
the supplier and other documents required for assessment. They will affix following
declaration with the original Bill of Entry.
“We wish to clear the goods on arrival of the vessel. We request that our Bill
of Entry be processed without waiting for the manifest. The vessel is due on
………………….. We shall formally present the Bill of Entry for noting as soon as the
Import Manifest is filed. In case the Steamer Agent fails to deliver the IGM to the
Import Department within 30 days from the date of advance noting of Bill of Entry, or
the goods in question are not found to be listed in the import manifest we shall
surrender advance noted Bill of Entry to the Import Department for cancellation and
shall present fresh Bill of Entry under Sec. 46 of the Customs Act, 1962 after the
delivery of Import Manifest in the Custom House”.
“Signature of the authorised person”
4.
Copy of Bill of Lading/Air Way Bill & Invoice may be accepted provided the
same are certified as correct by the importers.
5.
The Office Superintendent in Import Department will verify if all the documents
are in order and the dealing clerk will put „Advance Noting‟ stamp on all copies of Bill
of Entry indicating running serial no. of Advance Noting Register. Thereafter he
shall enter the relevant date on the systems and generate the Thoka number and
data for the subject Bill of Entry. He shall put the Thoka Number and date on all the
copies of the Bill of Entry.
6.
After the Thoka Number has been assigned, the Bill of Entry shall be
forwarded to the Appraising Group for assessment. After the completion of
assessment by Group Appraiser, the Bill of Entry shall be audited by the concurrent
Audit Section and all other formalities including counter signature by Assistant
Commissioner wherever required, will be completed. The Group Appraiser shall also
make assessment on the 5th copy of the Bill of Entry, which will be forwarded by
group to Import Department.
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7.
After delivery of the IGM by the Shipping Agent in the Import Department, the
Bill of Entry shall again be presented to the Import Department alongwith all
documents in original, which were not given with the advance copy of Bill of Entry for
entering IGM No., Date of entry Inwards, Line No. etc. Then the Advance Bill of Entry
shall be noted in the IGM by the Import Department, they will also make proper
endorsement on the 5th copy of the Bill of Entry. The other copies of the Bill of Entry
shall thereafter be forwarded to the Concurrent Audit Section for endorsement that
there is no change in the rate of duty. However, if there is any change in the rates of
duty, the concurrent Audit Section shall return such Bill of Entry to the dealing group
Appraiser for re-assessment.
8.
If the final entry of IGM is not made within 30 days from the date of
presentation of Bill of Entry, the Bill of Entry will have to be surrendered to the Import
Department for cancellation. After cancellation, necessary endorsement to this effect
will be made in the corresponding entry of „Advance Noting Registers‟.
9.
It shall be ensured that all Bills of Entry noted in advance in anticipation of
IGM, are again presented either for noting against the IGM or for cancellation, in
case the IGM of the vessel is not delivered within 30 days or the goods are not
covered by the manifest. It will be the responsibility of the Office Superintendent of
the Import Department to see that every Bill of Entry noted under this facility is
properly accounted for.
10.
The above facility will also be available in case of Bill of Entry for
warehousing, 100% EOU, Duty Exemption Schemes, etc.
6.7.
Noting on the basis of IGM of mother vessel
Now a day a large number of containers are transhipped at intermediate ports
by the mother vessel to feeder vessels. Such feeder vessels move quite frequently
between intermediate port & Indian ports. The name of feeder vessels is not known
to the importer in India till last moment. In such cases the advance noting of Bill of
Entry will be allowed on the basis of master Bill of Lading of mother vessel. On
arrival of feeder vessel, amended Bill of Entry shall contain the name of master
vessel as well as feeder vessel. The computer software may be modified suitably to
accommodate both the names.
6.8.
Levy of interest on duty amount
148
In terms of Section 47 (2) of the Customs Act, 1962 the importer is liable to
pay interest on duty amount in case they fail to pay the import duty within five days
from the date on which Bill of Entry is returned to them for payment of duty.
In case of Bill of Entry filed under Advance Noting, the interest liability will
start on completion of five days from the date on which Bill of Entry is returned for
payment of duty to importer/CHA after no change in duty is endorsed by Concurrent
Audit Section.
6.9
Production of documents
Wherever the goods have been imported against L/C, the importers would
provide bank-attested invoice before clearance of goods.
6.10. Rate of exchange In terms of proviso clause to section 14, the price is
calculated with reference to rate of exchange as in force on the date on which Bill of
Entry is presented under section 46. The legal position in this regard remains
unchanged.
The Rate of Exchange applicable is as in force on the date of 1st presentation
of Bill of Entry whether on final entry basis or prior entry basis or advance noting.
6.11. Substitution of Bill of Entry
Some of the Custom Houses are not allowing substitution of advance Bill of
Entry for home consumption to Bill of Entry for warehousing in case of advance
noting of Bill of Entry. In terms of section 46 (5) of Customs Act, 1962 substitution of
Bill of Entry for home consumption or Bill of Entry for warehousing or vice-versa is
allowed provided the interests of revenue are not prejudicially affected. The
substitution of Bill of Entry may be dealt as per the above-mentioned provision in
case of advance noting Bill of Entry also.
[ Board‘s Circular No. 22 / 97- Cus. dated 4 /7 / 1997 ]
6.12. Types of Bill of Entry
There are following four types of Bills of Entry for different class of imported
goods. The colour of the Bill of Entry mentioned refers to the colour of the paper on
which the same is printed: (i) For goods imported for Home Consumption –
White Bill of Entry.
(ii) For goods imported for Bonding (warehousing) or manufacturing in Bond –
Yellow Bill of Entry.
(iii) For Ex-bond clearance of the imported goods –
Green Bill of Entry.
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(iv) For goods imported for Defence and for Government Stores –
Pink Bill of
Entry.
The importer is required to file the Bill of Entry in five copies. Each copy has a
different colour coding for printing of the contents, as below(i)
Original copy of Bill of Entry, which is printed in Black letters and is retained
by Customs after Duty is paid on the goods.
(ii)
Duplicate copy of Bill of Entry which is printed in Blue letters and is collected
at the time of delivery of the goods at the gate of Port / Warehouse / Air Cargo
Complex either by Customs or by Port / Airport authorities and subsequently
dispatched to Custom House.
(iii)
Triplicate copy of Bill of Entry which is printed in Purple letters. This copy is
importer‟s copy on which Modvat endorsement is made.
(iv)
Quadruplicate copy of Bill of Entry which is printed in Green letters and is
meant for verification of Foreign Exchange remittance by the RBI
or for
Export promotion.
(v)
Fifth copy of Bill of Entry which is printed in Pink letters and is used by Port /
Airport authorities to make endorsement for forwarding of goods for
examination and for collecting port charges.
6.13. Electronic Bill of Entry
With the advancement of computer technology, many Custom Houses have
been furnished with elaborate network of computers and servers. With the help of
these, it has now become possible to process Electronic Bills of Entry. The data
pertaining to the details of Bill of Entry and related documents is stored electronically
in the EDI server of the Custom House/CBEC. As and when required, the
information can be transmitted to the designated EDI Centres in the Ports /
Warehouses / ICDs / Air Cargo Complexes etc., after processing. At the places of
storage of the imported goods, the Bill of Entry can be generated and printed with
the help of data furnished by the importers in relation to goods imported by them.
This system provides faster and easier clearance of Imported goods. Further, this
type of electronic generation of Bill of Entry has eliminated the use of various types
of coloured combined bills of entry.
The procedures related to processing Electronic Bills of Entry and clearance
of Imported goods through them have been described below.
150
The procedure given below is a general picture of processing in EDI system.
The importer /CHA has to submit dully filled in Annexure-1 (given below after
this) for clearance of import goods.
On receiving, the Annexure, the Service Centre will feed the details in the
System and generate the Checklist (C/L) for Importer/CHA verification. On
verification if the Importer/CHA is satisfied with the correctness of data he can
sign the C/L and gives it back to the Service Centre for final submission.
Service centre then will generate the Number for the Bill of Entry and B/E will
be put into Assessment queue.
After generating the number for the B/E, System will also allocate documents
to various appraising groups basing on the declaration given in the annexure.
The B/E will then be available to Appraising Officer (A.O) on first come first
serve basis.
The Assessment of B/E will be done on screen by the A.O. with no physical
verification of documents. The A.O. will give directions to the Examining Staff
in the form of an open order. Whenever the appraising group requires to see
some vital document in order to extend notification benefit or accept the
classification and valuation in the declaration, queries are raised to the
importer/CHA.
The importer/CHA can find the location/status of his B/E by looking at the
status display counter at the Service Centre and also first floor corridor. If the
status shows "query raised " then he has to rush to the Service Centre and
collect the query memo. After studying the query detailed reply can be given at
the Service Centre reply counter. In case any documents are to be shown the
same may be physically presented before the appraising group.
On Assessment by the A.O. the B/E will be marked to the Internal Audit A.O.
who will verify the correctness of assessment.
After Audit the B/Es with values above one lakh will be marked to Asst.
151
Commissioner/Dy. Commissioner (Group) for Assessment. All other B/Es will
be marked to the Bank for payment of duty.
If any amendment is warranted to the B/E the same may be got approved by
the Asst.Commissioner/Dy.Commissioner (Group) after which it has to be
submitted to the service centre. The amendment so entered in the system will
then figure on the screen of the Appraiser who may accept or reject the
amendment. The amendment thereupon is put to AC/DC group screen who will
finally decide the amendment. After every amendment of a bill of entry the B/E
is put for reassessment.
After Assessment is over by A.O/A.C. the System will generate one (customs)
copy of B/E and three copies of T.R.6 Challans for payment of duty and the
documents will be handed over to the Importer at Service Centre.
The Importer will have to pay the duty in the Bank stationed in the premises of
Custom House by DD/Cash.
After payment of duty the B/E will move to Goods registration section in
Examination Area,
After registration of goods by Systems Examining Officer, the B/E will move to
the screen of Examining Officer (Physical Examination). Along with the B/E,
the importer/CHA shall present documents, as per list below (the documents
should preferably be arranged in a file cover in the following order)
a. Duty paid Challan in original.
b. Copy of delivery order.
c. Copy of B/L.
d. Invoice in original.
e. Packing list in original.
f. Certificate of Origin in original.
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g. Exemption
Certificate
in
original,
if
the
notification so requires.
h.
Copy of the bond or undertaking executed, if
any.
i. GATT declaration duty signed by the importer.
j. Technical literature, catalogue etc.
k.
Copy of the request for Green Channel
clearance, if any.
l. Clearance
of
ADC
or
any
other
agency/authority, where required.
m. Any other documents required.
The Examiner will then examine the goods as per directions given by the
A.O/A.C (Assessment) and enters the Examination Report in the System.
The B/E will then move to A.O.(Examination) Screen for out of charge
permission. On verification of the Examination Report given by the Examiner,
the A.O.(Examination will grant Out of Charge Order on the screen.
Here System generates two (Importer, Bankers) copies of B/E, three
(Customs, Importer & Custodians) copies of Out of Charge (O/C) Order, one
copy of Examination Report.
A.O.(Examination) will retain Customs copy of B/E, Customs copy of O/C
Order, Examination Order and all original documents viz. Invoice, P/L etc.
The Importer will then approach the custodian for delivery of the goods by using the
O/C (Custodian copy) granted by Customs
153
DECLARATION FORM FOR FILING A BILL OF ENTRY.
1.
Importer Exporter Code (IEC) Number:
2.
CHA Code Number:
3.
Port of Shipment:
4.
Country of Origin:
5.
Country of Consignment:
6.
IGM No. & Date:
7.
Master B/L No. & Date:
8.
House B/L No. & Date, if any:
9.
Marks & Numbers:
10.
Container Number:
11.
Container Seal Number:
12.
Container size:
13.
No. of Packages:
14.
Gross Weight:
15.
Type of Bills of Entry:
a)
Home Consumption/Into Bond/Ex-Bond
b)
Advance/Prior Entry/Post Arrival
c)
High Seas Sale/Defence/Books
154
16.
Category of Importer: Government/Public Sector/Private
17.
a)
Whether first Check is required? Y/N
b)
If yes, reasons therefor:
18.
Whether Green Channel Clearance is required? Y/N
19.
INVOICE DETAILS:
i.
Number:
ii.
Date:
iii.
Value:
iv.
Cuttency
v.
Terms of invoice:FOB/CIF/CICF
vi.
Freight Charges:
vii.
Insurance:
viii.
Other Charges:
ix.
SVB LOADING: (Y/N)
If yes, furnish the following details:a.
Reference Number:
b.
Date:
c.
Custom House:
d.
Loading On: A/D/B
155
20.
e.
Percentage of Loading:
f.
Provisional or Final: P/F
CLAIM OF ASSESSMENT (PART I)
S.No. General
Unit
Description Price
Net
Accounting DGCI&S CTH
Quantity Unit
including
List
No.
Customs
ITC
Notfn
(HS)
No./Yr,
CODE
S. No.
where
applicable
CLAIM OF ASSESSMENT (PART II)
S.No. Notfn
No.forSCD
CETH CE Notfn Notfn
No./
Yr, for
S. No.
SAD
Other
CESS DGFT
Item-
Notfn
No.
ITC
wise
(HS)
loading,
Code/
if any
No.,
any
if
Policy
para/
Licence
Details
21.
WHETHER UNDER SECTION 48: Y/N
If yes, reason for delay:
156
22.
NATURE
OF
TRANSACTION:
SALE/CONSIGNMENT/HIRE/GIFT/OTHERS
23.
TERMS OF PAYMENT: LC/FOC/DP/SD/OTHERS
24.
CONDITIONS ATTACHED WITH SALES, IF ANY:
25
ARE BUYER AND SELLER RELATED: Y/N
IF YES
i.
NATURE OF RELATIONSHIP:
ii.
BASIS OF DECLARED VALUE:
iii.
VALUATION RULE(S) APPLICABLE:
26.
PARTICULARS OF PACKAGES AGAINST EACH ITEM OF
INVOICE:
DECLARATION
I enclose copies of the following documents: i.
INVOICES
ii.
PACKING LIST
I certify that the declaration above, the documents and the
information contained therein are true and correct.
Signature of the CHA/Importer
(Authorised Signatory only):
Name:
Date:
NOTE: Where the invoice contains more than one item, in units or by
157
description unit price of each item shall be indicated.
6.14.
IMPORT
PROCEDURE
6.14.1.
FILING OF IMPORT GENERAL MANIFEST:-
A declaration which is to be filed by the person-in-charge of the conveyance
or his agent under the provision of section 30 of the Customs Act, 1962, within 24
hours after arrival at the customs port is termed as import report or import general
Manifest. Goods imported in a vessel/aircraft attract customs duty and unless these
are not meant for customs clearance at the port/airport of arrival by particular
vessel/aircraft and are intended for transit by the same vessel/aircraft or
transhipment to another customs station or to any place outside India, detailed
customs clearance formalities of the landed goods have to be followed by the
importers. In regard to the transit goods, so long as these are mentioned in import
report/IGM for transit to any place outside India, Customs allows transit without
payment of duty. Similarly for goods brought in by particular vessel/aircraft for
transhipment to another customs station detailed customs clearance formalities at
the port/airport of landing are not prescribed and simple transhipment procedure has
to be followed by the carrier and the concerned agencies.
This declaration of Import General Manifest is filed prior to the arrival of the
vessel or aircraft or vehicle in the customs station. Notification 111/2003-Cus dated
19.12.2003 issued under section 30 provides that a person who is competent to
issue delivery orders to the importers may also file the manifest. Section 112 of the
Finance Act, 2003 has amended section 30 so as to require filing of IGM in respect
of vessels and aircrafts prior to the arrival. But, in case of vehicle arriving at land
158
customs station, import report may be filed within twelve hours of the arrival of the
vehicle at the land customs station.
A person filing declaration under the section has to declare the truthfulness of
contents. This declaration has legal consequences, which bind the carrier {Section
30(2)}. Any mis-declaration in filing IGM will attract the penal provisions of Section
111(f) and Section 112 of the Customs Act, 1962. Under section 116 of the Act, a
carrier is liable to penalty not exceeding twice the duty leviable on the goods which
are manifested but are not landed.
After taking the local IGM number the shipping lines shall submits the IGMs
through Service Centre of the Customs Station. Entry inwards is granted only after
final submission of IGM to EDI System. A check list would then be generated by the
Service Centre which would be verified by the authorized representative of the
Shipping Line who will verify the correctness of the particulars and submit the same
at the Service Centre, after putting his signature.
The IGM‟s to be submitted
electronically would have the complete details.
For amendment in import general Manifest, the Shipping line would be
required to submit a written request to the Asstt. Commissioner (Import), seeking
amendment of IGM particulars giving the reasons therefore.
After getting the
approval, the shipping line may approach the Service Centre for amendment in the
System. For this purpose the errors in filing the IGMs is divided into two category i.e.
Major errors and Minor errors.
6.14.2.
MAJOR AMENDMENTS:
(i) Addition of extra entries (Line numbers in the IGM)
159
(ii) Amendment in the quantity of goods already declared;
(iii) Changing the date of the Bill of Lading mentioned in the IGM;
(iv) Changing the Importer‟s/consignee name;
(v) Commodity description.
(vi) Conversion of general description of goods from cargo to un-accompanied
baggage and vice-versa.
6.14.3.
MINOR AMENDMENTS:
(i) Changing the Importers address only;
(ii) Correcting any spelling mistakes;
(iii) Conversion from one unit of measurement to another;
(iv) Change in the container number (only alphabetic prefix and the last 10th test
numerical);
(v) Change/addition of marks and numbers.
(vi) Conversion from local to T.P./SMTP and vice-versa;
(vii) Port of Loading;
(viii) Size of Containers (provided there is no change in the weight of the
consignment)
(ix) Port of discharge;
(x) Type of Packages
(xi) No. of Packages (provided there is no change in the weight)
(xii) Seal Number.
13/2005-Cus 11th March, 2005)
(F.No.450/118/2004-CUS-IV
CIRCULAR NO.
160
No penalty should be imposed if the import manifest/ import report is
corrected before the deadline for filing the import manifest/ import report as provided
in law, ends. Minor amendments as listed above could be carried out by Shipping
Lines/ Agents with the permission of proper officer but without any adjudication. The
major amendments can be made with the prior permission of proper officer. If there
is incomplete or incorrect filing of import report or import manifest by the person who
is required to file the import manifest or import report as per the provision of sub
section (1) of section 30 of the Customs Act, 1962, penalty should be administered if
the same is not corrected within permissible time limit, as per the legal provisions.
The said section (sub-section 3) provides that if the proper officer is satisfied that the
import manifest or import report is in any way incorrect or incomplete, and that there
was no fraudulent intention, he may permit it to be amended or supplemented.
Hence the need for adjudication will arise only in cases where there are major
amendments involving fraudulent intention or substantial revenue implication arising
from the amendments. Further it is possible that in certain special situations such as
mother/daughter vessel operation for lighterage on account shortage of draft,
congestion of port, natural calamity, the final quantity of goods covered by the IGM
would be known only after completion of such lighterage operation, requiring
amendment in quantity originally declared at the time of filing IGM. These
exceptional situations need to be taken care so that penal action is not initiated
mechanically in such situations.
(CIRCULAR
F.No.450/66/2004-CUS-IV November 24th, 2005)
NO.
44/2005-Cus
161
6.15. RATE OF DUTY FOR IMPORTED GOODS
Section 46 of the Customs Act, 1962 provides the procedural law for entry of
imported goods. All importers have to file a bill of entry of imported goods. All
importers have to file a bill of entry for clearance of goods, except in respect of
goods meant for transit or transshipment of transshipment. Section 15 lays down the
guideline for determining the rate of duty applicable to imported goods.
Generally, rate of duty in force in force on the date on which a bill of entry is
presented under Section 46 will apply. If the bill of entry is presented prior to the
arrival of vessel or aircraft, the rate of duty in force on the date on which „Entry
Inward‟ is granted by the Customs house will apply. If the goods are cleared from
the warehouse, the rate of duty applicable will be as on the date of presentation of
the bill of entry for home consumption. Lastly, in any other case, the rate of duty in
force, on the date of actual payment of duty, will apply.
For warehoused goods, the rate of duty is based on the date of filing of bill of
entry for home consumption. This is with effect from 14.05.03 when an amendment
in Section 15(1)(b) has been made vide Section 106 of the Finance Act, 2003.
6.16. FILING OF A BILL OF ENTRY
Under the EDI system, the importer is required to submit declarations in
electronic format containing all the relevant information to the Service Centre. A
signed paper copy of the declaration is taken by the service centre operator for nonreputability of the declaration. Once the IGMs are file in the Customs in the Customs
Computer System, whenever a Bill of entry pertaining to any line in the said IGM is
filed, the system will cross verify the details of IGM Nos., the Bill of Lading, Container
No., SMPT No., Gross Weight, total number of packages and the Bill of entry would
be accepted only if the relevant particulars match with the IGM. If any Bill of Entry is
162
not accepted by the System, the Importer/CHAs should verify that the IGM
mentioned has been filed in the System by the Shipping Line; and that the IGM No.,
the Bill of lading No. and other details of local IGM, have been correctly furnished in
the check list/Annexure submitted by them. A checklist is generated for verification of
data by the importer/CHA. After verification, the data is submitted to the system by
the Service Centre Operator and system then generates a B/E Number, which is
endorsed on the printed checklist and returned to the importer/CHA. No original
documents are taken by the operator at the Service Centre at this stage. Original
documents are taken at the time of examination. The importer/CHA also needs to
sign on the final document after Customs clearance.
After noting/registration of the Bill of entry, it is forwarded manually or
electronically to the concerned Appraising Group in the Custom House dealing with
the commodity sought to be cleared. Appraising Wing of the Custom House has a
number of Groups dealing with earmarked commodities falling under different
Chapter Headings of the Customs Tariff and they take up further scrutiny for
assessment, import permissibility etc. angle.
6.17. PROCEDURE IN THE CASE OF FIRST APPRAISEMENT
Users of ICES/I(Indian Customs EDI System/Import) would be able to make a
request for first check examination electronically, if it is necessary to do so, before
the assessment of the duty and where the complete information, is otherwise
available for filing the Bill of Entry. In the case of first check, at the data entry stage
the Declaration Form should be filled up accordingly and the reasons for the request
for the first check should also be duly entered.
163
A print-out of the un-assessed copy of the Bill of Entry, with first check
examination order and other instructions would be generated at the Service Centre
and shall be given to the CHA / Importer. The CHA / Importer shall put his signature
on this Bill of Entry copy, declaring truth of the contents thereof and shall present the
Bill of Entry, along with all original import documents, technical literature etc. at the
shed for examination of the goods. After carrying out the examination order, the
shed Inspector shall endorse the examination report on the Bill of Entry, as well as in
the System and attest all the documents submitted with the Bill of Entry and
catalogue found with the consignment. The importer shall present this hard copy of
the Bill of Entry to the Assessing Appraiser, for completing the assessment in the
System. Till it is received by the Assessing Officer, processing of Bill of Entry will
remain suspended. After assessment, the hard copy shall be returned to the CHA.
Three copies of the Bill of Entry (i.e. Customs copy, Importers copy, exchange
control copy) shall be printed at the Enquiry Counter of the Service Centre. Three
copies of the TR-6 Challan shall also be printed along with the Bill of Entry.
Amendments will not be allowed in case of Bill of Entry under first check
appraisement.
6.18. PROCEDURE FOR SECOND APPRAISEMENT
After noting/registration of the Bill of entry, it is forwarded manually or
electronically to the concerned Appraising Group in the Custom House dealing with
the commodity sought to be cleared. Appraising Wing of the Custom House has a
number of Groups dealing with earmarked commodities falling under different
Chapter Headings of the Customs Tariff and they take up further scrutiny for
assessment, import permissibility etc. angle.
6.19. DUTIES OF THE ASSESSING OFFICER
The basic function of the assessing officer in the appraising groups is to
determine the duty liability taking due note of any exemptions or benefits claimed
164
under different export promotion schemes. They have also to check whether there
are any restrictions or prohibitions on the goods imported and if they require any
permission/license/permit etc. and if so whether these are forthcoming. Assessment
of duty essentially involves proper classification of the goods imported in the
customs tariff having due regard to the rules of interpretations, chapter and sections
notes etc., and determining the duty liability. It also involves correct determination of
value where the goods are assessable on ad valorem basis. The assessing officer
has to take note of the invoice and other declarations submitted along with the bill of
entry to support the valuation claim, and adjudge whether the transaction value
method and the invoice value claimed for the basis of assessment is acceptable, or
value needs to be re-determined having due regard to the provisions of Section 14
and the valuation rules issued there under, the case law and various instructions on
the subject. He also takes note of the contemporaneous values and other
information on valuation available with the Custom House.
6.20. Appraising
-
AO has no choice in selection of BE
-
The first BE in the queue will be put for appraisal automatically
-
The Appraiser who logins in first will get the first BE on screen for a particular
group.
-
Alert messages against the BE are flashed on screen
-
AO can raise a Query to the Importer / CHA after approval by the concerned
Assistant Commissioner.
-
Approval of Amendment of BE
-
First Check may be ordered subject to approval by Asstt. Commissioner
and BE forwarded to Shed Appraiser for examination.
165
-
AO can change CTH, CETH, Notification NO, enter penalty, fine, load at
invoice level, item level, BE level by changing unit price.
-
Select standard examination order, record Examination Order if the
standardized
orders
are
to
be
modified,
enter
Instructions
and
Departmental comments
-
AO may seek the advice of AC online by forwarding the BE with
comments.
-
Be after appraisal is forwarded to Auditor for audit of BE. Where the AV
exceeds Rs. 1,00,000/- the BE will have to be passed by the Assistant
Commissioner.
-
AO can order for execution of Bond by marking the assessment
provisional, pending test, production of documents, Valuation details etc
-
The BEs returned from Shed after first check have to be retrieved by
choosing the option in the Appraiser‟s Main Menu.
-
BEs can be de-activated or activated.
6.21. Green Channel Processing
-
Importer has to make a request for Green Channel clearance (GC).
166
-
The concerned Assistant Commissioner may consider the request or may not
consider depending on norms set in this regard.
-
All BEs with request for GC clearance are marked automatically to AC for
approval.
-
AC (Docks/shed) may accept or reject the green channel approval granted by
AC (ACL).
-
Green Channel Bills after payment of duty, if any, can be submitted to AO for
OOC directly.
6.22. First Check Processing
-
First Check can be requested by the Importer or can be given AO subject to
approval of the same by the concerned AC.
-
All first check BEs are marked to AC irrespective of their Assessable Value.
AC may accept or reject the AO‟S decision for first Check.
-
BE will be marked to shed and marked back to AO (Assessment) after the
First Check is entered.
167
6.23. Prior Entry BE
-
A Prior Entry B/E may be filed 30 days before the arrival of the conveyance.
-
The prior B/E may be filed in the usual method of filing a BE.
-
The B/E shall be marked Prior in the Status Field of the BE.
-
After appraisal one copy of the BE shall be generated along with three copies
of Challan for duty payment.
-
On filing of IGM the BE shall be regularized in the System.
-
If there is any change in rate of duty after filing of BE as on date of Entry
inwards the BE and shall be put up to the Appraiser for re-appraisal and
further normal procedure adopted.
6.24. PROCESSING OF BILL OF ENTRY
The assessing officer processes the cargo declaration on screen with regard
to all the parameters as given above for manual process. However in EDI system, all
the calculations are done by the system itself. In addition, the system also supplies
useful information for calculation of duty, for example, when a particular exemption
notification is accepted, the system itself gives the extent of exemption under that
notification and calculates the duty accordingly. Similarly, it automatically applies
relevant rate of exchange in force while calculating. If assessing officer needs any
clarification from the importer, he may raise a query. The query is printed at the
service centre and the party replies to the query through the service centre. After
168
getting a satisfactory reply from the Importer/representative the said Bill of Entry will
be assessed. After assessment, a copy of the assessed bill of entry is printed in the
service centre. Under EDI, documents are normally examined at the time of
examination of the goods. Final bill of entry is printed after „out of charge‟ is given by
the Custom Officer.
6.25. EXAMINATION OF THE IMPORTED GOODS
The bill of entry, after assessment by the group or first appraisement, as the
case may be, needs to be presented at the counter for registration for examination in
the import shed. A declaration for correctness of entries and genuineness of the
original documents needs to be made at this stage. After registration, the B/E is
passed on to the shed Appraiser for examination of the goods. Along-with the B/E,
the CHA is to present all the necessary documents. After completing examination of
the goods, the Shed Appraiser enters the report in System and transfers first
appraisement B/E to the group and gives 'out of charge' in case of already assessed
Bs/E. Thereupon, the system prints Bill of Entry and order of clearance (in triplicate).
All these copies carry the examination report, order of clearance number and name
of Shed Appraiser. The two copies each of B/E and the order are to be returned to
the CHA/Importer, after the Appraiser signs them. One copy of the order is attached
to the Customs copy of B/E and retained by the Shed Appraiser.
6.26. GREEN CHANNEL FACILITY
Some major importers have been given the green channel clearance facility. It
means clearance of goods is done without routine examination of the goods. They
have to make a declaration in the declaration form at the time of filing of bill of entry.
The appraisement is done as per normal procedure except that there would be no
physical examination of the goods. Only marks and number are to be checked in
such cases. However, in rare cases, if there are specific doubts regarding
description or quantity of the goods, physical examination may be ordered by the
senior officers/investigation wing like SIIB.
6.27. EXECUTION OF BONDS:
169
Wherever necessary, for availing duty free assessment or concessional
assessment under different schemes and notifications, execution of various type of
bond depends upon the type of assessment and Scheme claimed for assessment,
bonds with Bank Guarantee or other surety is required to be furnished. These have
to be executed in prescribed forms before the assessing Appraiser.
6.28. PAYMENT OF DUTY
The duty can be paid in the designated banks or through TR-6 Challans.
Different Custom Houses have authorized different banks for payment of duty. It is
necessary to check the name of the bank and the branch before depositing the duty.
Bank endorses the payment particulars in Challan which is submitted to the
Customs.
6.29. INTEREST LIABLITY ON THE ASSESSED DUTY
The interest liability arise under Section 47(2) of the Act for failure to pay duty
within five days from the date of assessment of bill of entry.
6.30. PRIOR ENTRY FOR BILL OF ENTRY
For faster clearance of the goods, provision has been made in section 46 of the
Act, to allow filing of bill of entry prior to arrival of goods. This bill of entry is valid if
vessel/aircraft carrying the goods arrive within 30 days from the date of presentation
of bill of entry. The importer has to declare that the vessel/aircraft is due within 30
days and they have to present the bill of entry for final noting as soon as the IGM is
filed. Advance noting is available to all imports except for into bond bill of entry and
also during the special period.
6.31. BILL OF ENTRY FOR BOND/WAREHOUSING:
A separate form of bill of entry is used for clearance of goods for
warehousing. All documents as required to be attached with a Bill of Entry for home
consumption are also required to be filed with bill of entry for warehousing. The bill of
170
entry is assessed in the same manner and duty payable is determined. However,
since duty is not required to be paid at the time of warehousing of the goods, the
purpose of assessing the goods at this stage is to secure the duty in case the goods
do not reach the warehouse. The duty is paid at the time of ex-bond clearance of
goods for which an ex-bond bill of entry is filed. The rate of duty applicable to
imported goods cleared from a warehouse is the rate in-force on the date on which
ex-bond bill of entry is filed for home consumption.
After group assessment, audit and duty computation, the CHA or importer will
present a double duty bond under Section 59 of the Act. The AC- bond will present
a double duty bond under Section 59 of the Act. The AC – bond will accept the bond
and assign a number and have it entered in the computer installed in Bond section.
Regular Importers have continuity bond facility and they may get the bond
value of consignment debited. The data entry operator/STA will capture the data and
endorse on the B/E „entered in computer‟.
The bond section grants clearance. Original B/E is kept in the bond section.
The duplicate will be produced before the Superintendent in charge of warehouse
who will endorse the same as a token of the goods having been warehoused. This
stamped duplicate copy of the B/E will be sent to AC-Bonds by the Superintendent.
6.32. IMPORT CLEARANCE AGAINST DEPB
Registration of DEPB
The designated officer will enter the particulars of the DEPB in the System.
The DEPB holder has to verify the particulars of entry in a check list generated and
given to him. After return of check list, the designated officer will register the DEPB.
DEPB will not be registered unless the DGFT has electronically transmitted the IEC
number and PAN number to the Customs data base. Registration number will be
endorsed on the face of DEPB. Partly utilised DEPBs will be registered for the
balance credit available. Changes in data of DEPB can be done only through the
AC/DC of Group VII.
Issue of TRA
171
Application for issue of TRA should be made to the designated officer, if
import has to be made at a port other than the port of registration. TRA number is
given manually. The TRA will have a serial number, date, DEPB number Customs
station to which issued, IEC number, amount of credit transferred, corresponding
FOB export amount transferred. After the TRA check list is verified by the applicant
and returned to the designated officer, TRA is issued in three copies, one for port of
issue, one for port of clearance and the last copy for the importer.
Unutilized portion of TRA can be re-credited with the authority of AC/Dc of
Group VII.
Receiving transfer advices
TRAs received from other Customs stations will be registered in the same
manner as DEPBs . A TRA registration number is generated and is endorsed on the
importer‟s copy of TRA.
Claim of DEPB exemption
Claim of DEPB exemption must be made in the data sheet filed in lieu of Bill
of Entry in the EDI system (Sl NO. 20, part III). If this benefit is coupled with any
other exemption such EPCG, that also must be indicated.
The option to pay
additional duty of Customs either by cash or through DEPB must also be indicated in
the same declaration. Claim of exemption from SAD must also be indicated with
specific reference to notification and serial number in the table of that notification.
Bill of Entry
A check list of bill of entry is prepared for verification by importer or the CHA.
They have to ensure that debit against DEPB is made against that particular licence
which is intended to be used. After submission of verified check list, an unassessed
bill of entry is printed.
Assessement
All DEPB bills of entry are routed for assessment at Group VII. Unassessed
Bill of Entry, with original import documents and DEPB original scrip will be
presented to the designated appraiser. The appraiser will retrieve the bill of entry on
172
screen and assess the same. The screen copy will move to concurrent audit for
verification. Thereafter, it will move to the designated AC / DC who has to assess
the goods based on CTH. After assessment, assessed copy of bill of entry will be
printed along with TR 6 challan if any duty component is remaining. Duty has to be
paid in the designated bank in cash or by DD.
6.33. IMPORT CLEARANCE AGAINST DFIA/ADVANCE AUTHORISATION
The import of goods is made under schemes like DFIA/Advance
Authorization, EPCG or EOU etc. The importer in such cases is required to execute
bonds with the Customs authorities for fulfilment of conditions of respective
notifications. The bond shall be executed by an authorized signatory, having the
power of attorney on behalf of the importer.
If the importer fails to fulfil the
conditions, he has to pay the duty leviable on those goods. The amount of bond
would be equal to the amount of duty leviable on the imported goods. The bank
guarantee is also required along with the bond. However, the amount of bank
guarantee depends upon the status of the importer like Super Star Trading
House/Trading House etc. In all the schemes which were based on Licences issued
by the Appropriate Licencing authority, first , the said licence is to be registered at
the port of registration. There after, import is permitted as per the conditions of the
licence. In all such cases movement of Bill of entry is as usual along with the debit
of the licence by the concerned Assessing Officer. At the time assessment of such
bill of entries, Assessing Officer should take care of policy provisions and various
notifications under which the said licence were issued. Assessing Officer should
also care for the nexus between import items and the goods exported or to be
exported under the said licence for fulfillment of export obligation vis a vis the
definition of raw materials in the notification.
6.34. FLOW CHART FOR THE BILL OF ENTRY PROCESS
CHA / IMPORTER

SERVICE CENTRE

CHECK LIST

ERROR / ERROR REMOVAL


SUBMISSION

APPRASING OFFICER
173
AUDIT 
VALUE > 1 LAKH

ASSTT. COMMISSIONER
GREEN CHANNEL / IF NO  SHED APPRAISER 
 BANK 
INSPECTOR 
SHED APPRAISER  OUT OF CHARGE.
6.35. FLOW CHART FOR FIRST CHECK BILL OF ENTRY
AO

 BANK
ACL 
SHED 
AO 
AUDIT 
AC
 OUT OF CHARGE
6.36. GREEN CHANNEL CLEARANCE
AO 
AUDIT 
AC (SHED) 
AO OUT – OF – CHARGE
6.37. SYSTEM APPRAISED
SUBMISSION 
BANK
 AO (SHED)
SHED AUDIT 


AC SHED ( IF GREEN CHANNEL )
AO OUT- OF-CHARGE
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6.38. QUERY
AO 
AC 
AC 
BANK 
IMPORTER 
AC 
AC 
AO 
AUDIT
BANK  EXAMINATION  OUT-OF- CHARGE
6.39. SECTION 48
AC (IF APPROVED)
BANK 
AO
EXAMINATION 
AUDIT
OUT – OF – CHARGE
6.40. SECTION 46
AC SHED 
EXAMINATION 
 AC
BANK 

6.41. BONDS
AC
SC  AO  AUDIT
EXAMINATION  OUT-OF-CHARGE
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AO 
BOND REGISTRATION 
SECTION 
AC (FOR ACCEPTANCE) 
BANK ( IF DUTY PAYABLE )  EXAMINATION

BOND
OUT-OF-
CHARGE
6.42. TIME LIMIT FOR FILING A BILL OF ENTRY
There is no time limit provided in the Customs Act, 1962 for filing a bill of
entry. Section 46 of the Act does not prescribe any time limit for filing of bill of entry.
And, Section 48 authorizes the custodian to take steps to dispose of the goods if the
same are not cleared within 30 days.
6.43. Import of Packaged Commodities – Conditions
The DGFT has issued Notification No. 44 (RE – 2000) / 1997-2002, dated
24.11.2000, 2000 (122) E. L. T. E63, directing that all packaged products imported
and covered by the Standards of Weights and Measures (Packaged Commodities)
Rules, 1977 should be in compliance of all the provisions of the said rules when
imported into India. The Customs authorities are directed to ensure compliance of
this condition before the commodities are cleared by them for home consumption.
The details to be included are as follows :
A.
Name and address of the importer,
B.
Generic or common name of the commodity packed,
C.
Net quantity in terms of standard unit of weights and measures,
D.
Month and year of packing,
E.
Maximum retail price at which goods are sold to ultimate consumer.
6.44. Importation after Implementation of Risk Management System (RMS) :
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The Central Board of Excise and Customs (CBEC) has issued two Circulars Nos.
42/2005 and 43/2005 - Cus both dated 24/11/2005, for operational sing the Risk
Management System (RMS). The detailed procedure for clearance of Bills of Entry
on implementation of RMS under the Indian Customs EDI System (ICES) is given
below. Certain guidelines to the officers posted in the SIIB for managing the RMS
are also given.
6.45. The RMS Process: Bills of Entry and the Import General Manifest (IGM) filed
electronically in the ICES either through the Service Centre or through ICEGATE
mode will be forwarded to the RMS. The RMS process the Bill of Entry and the IGM
through a series of steps and generate an electronic output for the ICES. This output
determine whether the Bill of Entry is be taken-up for action (appraisement or
examination or both) or be given Out of Charge directly. RMS output will provide
specific instructions for the Appraising Officer, Examining Officer or the Out-ofCharge Officer. The output containing instructions communicated by the RMS on the
need for assessment and/or examination shall be followed by officers processing the
BE. The purpose of RMS is facilitation of a large number of Bills of Entry, which are
perceived to be compliant with the Customs Laws and regulations. Such compliant
B/Es which are self assessed by the Importers are processed by the RMS and goods
will be ready for out of charge on the basis of the acceptance of importer's
declaration and without any assessment /examination by the officers. Thus, when
Bills of Entry are filed through ICEGATE or Service Centre, importers would be able
to obtain the assessed copies of their Bills of Entry and Challan, within a short span
of time. After payment of duty, goods can be cleared on presentation of required
documents to the examination staff at the shed concerned.
Some Bills of Entry are, however, be taken up for assessment and/or
examination based on determination by the Risk Management System regarding the
perceived risk in the Bill if any, based on the intelligence built in RMS. Similarly bills
may get selected for action based on specific intelligence available. Whenever a
specific pattern of non-compliance is noticed, the RMS may also select such bills of
entry for Assessment and/or Examination. All such Bills which are selected for action
are processed in the ICES as per the treatment and instructions communicated by
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the RMS. After clearance of goods, the details of all such BEs which have been
given "Out of Charge" (OOC) for the day are to sent to the RMS by the ICES for the
purpose of selection of Bills for post clearance audit. The list of selected BEs sent to
the ICES. Post clearance audit is
conducted in the ICES only on the basis of
selections made by the RMS.
6.46. Accredited Clients Programme (ACP):
As a part of the R.M.S., an
Accredited Clients Programme (ACP) is also implemented. The details of this
program are set out in the CBEC circular No 42/2005 - Cus dated 24/11/2005. As a
matter of course, accredited clients are granted self appraisal based on the
declarations contained in their bills of entry and the system will generate the Bill of
entry Number and print a copy of the Bill of Entry with the TR6 challan for duty
payment. The Importer/CHA has to make the duty payment (if any) before
proceeding to take delivery of the goods. Though self assessment facility and
examination waiver are given to the accredited clients, the compulsory compliance
requirements (CCRs) applicable to the imported goods must be fulfilled by the
importer/CHA before seeking out of charge. The importers/CHAs have been advised
(vide Public Notice N0. /O6 dated 17.03.2006) to keep ready all certificates, permits,
licenses or any other documents which are essential for clearance of goods or for
availing any duty exemption. CHAs/Importers have also been advised to submit all
such details of certificates in the annexure filed for a B/E at the ICEGATE/Service
centre; Soon after goods registration is done in system and the marks and numbers
(seal number and integrity of the seal in the case of FCL) are verified, Appraising
officer/ Superintendent will give out of charge in the system, after collecting all
necessary documents (listed below) and after verifying that compulsory compliance
requirements are fulfilled. If any BE is required to be sent back by OOC officer for
assessment on account of any shortcomings in such ACP BE, the permission of the
Commissioner of Customs, shall be sought on file before sending it for Investigation
or assessment. The details of such permission obtained, should be entered as
"Departmental comments" in the EDI system. In respect of the consignments of ACP
importers, officer giving out of charge should verify that the importer is infect an ACP
client and also verify identity of authorized person who signs the checklist while
taking out of charge. A small number of ACP bills may be selected on random basis
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for action. Similarly bills may be targeted for action by RMS. In all such cases the
procedure for processing the non-ACP bills of entry in ICES as given below shall be
followed.
6.47. Assessment of RMS selected bills of entry in ICES:
The RMS has not altered the existing process and movement of Bills of entry in
ICES but for abolition of concurrent audit and changes in Bond management. When
RMS selected Bs/E are directed for assessment by system, officers concerned are
required to perform appraising as per normal procedure under ICES. RMS will
generate assessment instructions for each selected Bill of entry depending on the
perceived risk. The instructions appear in the "RMS instructions" portion of the bill of
entry in the ICES screen of the Officers and can be accessed using "F2 -> View ->
RMS instructions" keys. Instructions are based on risk perception in each Bill of entry
and the items declared, the Importer, CHA, Supplier or any other data available in
the BE. Officers assessing the B/E shall carefully read each instruction and arrive at
a decision to tackle the risk. These instructions form an assist and are intended to
guide the officers in assessment. In addition to the Appraising instructions the RMS
will send targeting and Intervention related Instructions, in case there are any
target/intervention hits on a B/E corresponding to the idea behind such targets or
Interventions in the RMS. Officers are expected to study all the instructions on the
screen carefully and assess the B/E. It needs to be noted that the officer need not
limit his scrutiny to the strict confines of RMS instructions. The officer has the
freedom to go beyond the instructions and scrutinize other sensitive aspects of the
B/E which are not referred to in instructions. Whenever the Officer assessing BE
feels that any specific RMS instruction is not in tune with the declaration in the B/E.
he/she should enter a detailed comment in the departmental comments and proceed
to take decision as per law. The Risk Management System will also provide to the
officers a category of instructions termed Compulsory Compliance Requirements
(CCRs). This term refers to compliance requirements that have to be mandatorily
fulfilled such as clearance from the Other Governmental Departments (OGDs) like
Drug Control authorities, Animal Husbandry authorities, BIS certifications, Plant and
Quarantine Authorities etc. Similar instructions would also be provided by the
System where any bonds, undertakings certifications etc., are required to be
furnished for the purpose of claiming any exemption notifications. It may be noted
179
that while all efforts have been made to make the RMS database containing these
instructions as comprehensive as possible, certain requirements might have
escaped notice. The officers, therefore, should bear in mind that these are
mandatory requirements under the Allied Acts or under the exemption notifications
and must be fulfilled before allowing clearance.
6.48. DUTIES OF ASSESSING OFFICER:
The assessing/examining officers are also required to focus on the 'data quality' of
the B/E declarations. The assessing officer should check the description of the item,
besides the correctness of classification, valuation, notification benefit(s) claimed, if
any, and also ensure compliance with mandatory requirements prescribed under
Foreign Trade Policy and/or allied enactments. They are required to check all critical
aspects of description like brand, model, make, number, specification, grade, purity,
configuration, capacity, denier etc. which may have a direct bearing on valuation,
classification or extension of exemption benefit. They shall make sure that all
mandatory fields in the bill of entry are properly filled. While discharging their
functions, they would be required to follow all the existing instructions /Standing
Orders on the subject. The assessing officers in the Group will subject the Bs/E to all
the required checks in respect of valuation, classification, requirements of the Allied
Acts, etc. and in doing this, the officers should also take the assistance of other
support systems provided such as NIDB, Alerts, Valuation Bulletin, etc. Additional
information, wherever required may be sought from the importers. However, frivolous
and piece-meal queries should be avoided and the query should be detailed and
covering all aspects. The Additional/Joint Commissioners in-charge of the Groups
shall monitor the queries closely. When a B/E comes for assessment, the Appraising
Officer after completion of his scrutiny of RMS instructions and B/E declaration shall
write a self contained order for examination so as to cover all the critical parameters
of examination.
6.49. EXAMINATION OF IMPORTED GOODS:
All RMS selected bills examination of goods shall be carried out as per the
assessing officer's examination order and the instructions communicated by the
RMS. Certain bills of entry may be directly routed by the RMS for examination
without any assessment by officers. In such cases, the RMS instructions for
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examination should be treated as examination orders. The officers shall bear in mind
all existing standing orders and circulars issued by the department, while performing
their work. The examining officers must ensure that the goods under examination
tally with the declared description, including critical parameters like brand, model,
make, number, specification, grade, purity, configuration, capacity, denier etc., which
may have a direct bearing on valuation, classification or extension of exemption
benefit. The examination of the goods and out of charge (OOC) shall be completed
by the officers, only after ensuring that the compulsory compliance requirements
(CCRs) mentioned in the examination order column are duly complied with.
Whenever the Officers examining the cargo feel that the CCRs figuring on their
screen as well as printed on the BE are not applicable to any specific BE, they must
enter a departmental comment in the BE in the EDI specifying the reasons thereof
before giving clearance. It is also clarified that officers in the shed may examine a
consignment even if it is directly selected for out-of-charge by the RMS, if they have
a valid reason for doing so. However, such examination should be done only after
bringing the case to the notice of the Additional/Joint Commissioner of Customs
(Shed). In case of Accredited Clients, it would require written approval of the
Commissioner.
6.50. Out of Charge:
Even though in many cases the R.M.S. decides to give appraisal and examination
waiver, the out-of-charge function would not be dispensed with and customs
clearance in terms of Section 47 will continue to be given by the proper officer to
each and every BE. It must be understood that the OOC officer will have a very
important responsibility after introduction of RMS, since he will exercise the last
check before the goods are given out of charge. Therefore the OOC officer should
scrutinize those documents where "No assessment & examination" was prescribed
by RMS and if he has strong reasons to believe that the importer has mis-declared
the description or value of the goods, he should send the B/E back to the appraising
group, for assessment but only with the approval of the Addl/Joint Commissioner in
charge of examination. In many cases, BE containing one or many items in the
invoice declared as on Free of charge basis, or of no commercial value or value is
declared for Customs purposes only. In such cases, if the OOC officer finds that the
importer did not seek first check, or the payment terms have not been declared
181
correctly in the invoice, he should send such Bill of entry to the appraising group
concerned for correct determination of value and duty. It may be noted that some
compliance requirements may not figure in the CCR related instructions provided by
the RMS. Such requirements would be those which are very general in nature or are
applicable to a very wide range of imports. The list below cites illustrative instances
of such requirements. The Officer giving the out of charge shall also ensure that the
consignment complies with such requirements, besides the CCRs printed in the B/E
and appearing in the examination instructions column, before clearance:
a)
As per the CBEC cir. no. 39/04 dated 3/6/04 read with the Plant
Quarantine (Regulation of Import into India) 2003, phyto sanitary certificate
is essential for packaging material used in imported goods. This circular is
applicable to all goods covering every CTH imported with packaging made
of material of agricultural origin.
b)
DGFT notification no. RE -44 dated 24/11/2000 on labelling and marking
rules for imports stipulates that MRP, generic name of the product, month
and year of entry into trade channel, name of the importer and address
and quantity in standard units must be carried prominently on the "principle
display panel" of the packages. This requirement must be met before
customs clearance.
c)
Import of beef in any form and any product containing beef in any form is
prohibited as per Note 3 of General Note to the Import Policy. A
declaration is also required to that effect from the importer as per Note 4
General Note to the Import Policy.
d)
Import of all edibles/ food products, (domestic sale and manufacture of
which are governed by PFA Act, 1954) should have a valid shelf life of not
less than 60% of its original shelf life, as per provision of General Note 13
to the Import policy (Vol.3).
e)
Import of Meat and Poultry product is allowed only on fulfillment of
condition laid down in note 7 of the General notes to the Import Policy.
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f)
Import of Jute Bags, Jute products and packaged bales containing raw
Jute is allowed only if the Jute batching oil content in the Jute is not more
than 3% as per CBEC circular no 21/2002 dated 04/04/2002 issued from
F.No.526/76/2001-Cus (TU).
In case of any discrepancy in the declarations with respect to the issues discussed
above the OOC officer can send the BE back for assessment with the written
permission of the Addl/Joint Commissioner in charge of Examination.
6.51. Collection of Documents:
While discharging the Out of Charge responsibility, the following documents should
be collected from the importer by the officer giving out of charge after affixing his
signature on the important documents at serial numbers b), c), d), e) and J) listed
below, and any other crucial document decided by the OOC officer.
a)
Duty paid challan
b)
First check copy of the Bill of Entry assessed under first check
assessment scheme
c)
Finally assessed Bill of Entry
d)
Invoice / packing list. Fax / E-mail copies of Invoice and other documents
duly certified by the Importers may also be accepted for clearance of
consignments in view of CBEC Circular No. 40/98-Cus, dated 11.06.98
issued from F.No.450/81/98-Cus.IV.
e)
Certificate of origin, wherever required
f)
Exemption Certificate where required, when concession in duty has been
claimed, based on any condition under any exemption notification
g)
Bill of Entry declaration with GATT declaration, duly signed by the
importer and CHA declaration
h)
Copy of Delivery Order
i)
Master Bill of Lading
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j)
House Bill of Lading
k)
Technical literature etc., wherever required
l)
ADC clearance, wherever required
m)
Other documents specified in the Compulsory compliance instructions
generated by the RMS
n)
Any other documents submitted by the Importer/CHA.
All these documents should be neatly kept in a docket, which will have a check list
on the top, containing the documents listed supra. The Check list shall be signed by
the OOC officer and the representative of the CHA/Importer. While signing the
documents, the OOC officer shall put his name stamp under his signature.
6.52.
CHANGE IN BOND MANAGEMENT:
For B/Es filed in Groups other than Export Promotion Groups (Group VII), the
importer/CHA has to specify the running EDI bond number, if any, at the time of filing
a BE for all bills which require submission of Bond to Customs before clearance.
Bond debits will be system driven. The existing system of approval of quantum of
bond debit during assessment by Appraising officer in the Group will be dispensed
with. In all those cases where running bonds are not available at the time of filing
B/E,
the
importer/CHA
will come to the Bond Clerk in the Appraising Group soon after the BE is submitted in
ICES for bond registration and debits. If the BE is selected for assessment by
officers, the necessary debits can also be made by the concerned officers in the
groups. No Bill of entry can be registered for examination unless all necessary bonds
are debited. At the time of filing a BE the CHA/Importer can submit in the annexure
filed for the BE with data regarding the following:
i.
Details of double duty bond if any for Warehouse Bills of entry.
ii.
Details of Undertaking, if any.
iii.
Details of End-use Bonds, if any.
iv.
Details of Re export Bond, if any.
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v. Details of Miscellaneous Bond data for example certificates required to avail
certain SL Nos of Notification 021/2002.
vi. Details of Central Excise bond, if any, under Customs (Import of Goods at
Concessional Rate of Duty for Manufacturing of Excisable Goods) Rules 1996.
6.53. OUT OF CHARGE OF ALL FACILITATED BILLS:
Even if a bill of entry is neither picked up for Appraising nor for Examination, all
documents required to be submitted along with bill of entry shall be collected
invariably by the Officer before giving Out of Charge (OOC). Marks and Numbers
should be checked by the Out of charge officers for all the facilitated Bills of entry. In
case of Full Container Load Cargo covered by facilitated bills, the out of charge
should check the Container No and verify whether the Container Seal is intact or not
before clearance. The officer shall ensure that all Compulsory Compliance
requirements are fulfilled before clearance. It is also clarified that whenever the
decision of the OOC officer is at variance with the CCRs printed in respect of a
particular BE; he should record the reasons for his view in the EDI.
6.54. DEBIT OF CUSTOMS DUTY EXEMPTION CERTIFICATES ETC:
If the BE is selected for assessment and/or examination, the officers shall verify
these details in the system before clearance. For all Facilitated Bills of entry the Out
of Charge officer will be responsible to verify the entry in the system. If bond related
details are not correct or if any critical document is not available, BE can be referred
to assessment group with the permission of the Additional/Joint Commissioner in
charge of the Shed. It is further stated that the EDI system will take care of debits in
respect of all existing running bonds and where the importer specifies the bond
number by system-driven debits. The trade will approach the Bond Clerk in the
Appraising Group and AC/DC in-charge of the Group for Bond or UT acceptance.
Further, activities like defacing/manual debiting of certificates issued by various
authorities like Central Excise, AEPC, TEXPOCIL etc, which were hitherto being
handled by the Appraising Group will now have to be discharged by OOC officers, in
all such cases where the bill of entry has not been marked to Groups by RMS.
Please note that the CHA/Importer can give all the relevant details of the
Undertaking/Duty exemption certificate/Central excise certificate etc in his annexure
185
to the BE. In all such cases the BE is allowed to go for goods registration. However
the OOC officer is expected to verify all the relevant documents as well as the details
given in the ICES and allow clearance only after defacing/debiting the documents
manually, if already not done by the assessment officers.
6.55. CONCURRENT AUDIT/Post clearance Audit:
Consequent to introduction of RMS, concurrent audit has been abolished and
replaced by Post Clearance Compliance Verification (Audit). The objective of Post
Clearance Verification Programme is to monitor, maintain and enhance compliance
levels, while reducing dwell time of cargo. The selection of Bs/E for Post Clearance
Audit will be done by the RMS and communicated to the ICES which will populate
the selected Bs/E onto the Auditors screens. The Auditors would be required to audit
the Bs/E after referring to the documents submitted in the Shed at the time of out-ofcharge vis-á-vis the declarations made in the BE. For this purpose, the Shed would
be provided with a list of Bs/E selected by the RMS and shed would be required to
forward the documents in respect of this Bs/E to the Audit Branch for distribution to
the Auditors concerned in Audit Branch. The endeavour should be to complete audit
of all BEs selected by RMS, within 48 hours of Out of charge. After the audit is over,
these documents may be forwarded to CRA as per the normal procedure. The
documents in respect of Bs/E which are not selected for audit will continue to be sent
to CRA as per present procedure.
6.56. PCA Process in the ICES: All BEs which are given out-of-charge on a
particular day in ICES are sent to RMS at the end of the day. RMS will select BEs
from this lot, on a daily basis depending upon the criteria entered in the system. A
PCA module has been developed by NIC. The full feature module has many
features. The module will facilitate raising of queries to the importer; issue of show
cause notices with system computation of differential duty, capturing details upto the
first stage of adjudication etc., however, the full feature PCA module is likely to be
available only after some time. Pending release of the full feature PCA module, an
abridgedversion has been released by NIC and the same has to be followed till
further instructions are issued. The work flow of documents in PCA module is given
below:
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The selected BEs are processed in the following manner:
(i) BEs are pooled before Audit Officer (AO/ Superintendent) who has to pick BEs for
audit, from the pool, in the manner dictated inter alias by availability of customs
docket for the said BE. The Auditor's screen in ICES will be very similar to the
appraiser's interface, currently available. A limited facility for changing duty related
aspects of the BE has been provided in auditor's screen. The Auditor can change
rate of duty, deny a notification and differential duty will automatically be computed
by system. The auditor is also given specific audit instructions by the RMS. These
audit instructions have been made available in the F2 View RMS instructions" menu.
These instructions form an assist and are intended to guide officers in conducting
audit. It needs to be noted that auditors need not limit their scrutiny to the strict
confines of these audit instructions. The auditor has freedom to go beyond audit
instructions and scrutinize aspects of the BE which may not have been referred to in
the instructions.
(ii) During the course of audit, the auditor may find it necessary to elicit additional
information from importer or seek clarifications from him. It needs to be realized that
the ease of eliciting such information from the importer will be considerably diluted,
during PCA stage as compared to the promptness with which replies to queries
raised during live processing of Bills are received. Thus queries during the audit
process have to be limited to the minimum and should be resorted only where there
is a real information gap. The abridged version of PCA does not have a facility for
raising queries through ICES. This feature will be present in the full version. Pending
introduction of the feature, queries have to be raised, manually by the auditor, from
audit files, after obtaining approval of AC / DC (Audit). The queries have to be
despatched by post to the CHA / Importer and may also be sent by email. (iii) After
receipt of reply from CHA / Importer, if the audit officer decides that there is no audit
point apparent in the BE, then he will mark the BE to AC/DC (Audit). If AC/DC (Audit)
concurs then the BE will be sent to history after generation of an EOD message to
the RMS. If the AC/DC (Audit) finds it necessary to revisit the bill of entry, he may
send it back to Audit Officer with his comments. (iv) On the contrary if the Audit
Officer detects an audit point he will be in a position to alter the parameters like
value, quantity, notification claimed, item description etc., (in very much the same
manner as is currently done by the appraiser during assessment of a live BE) by
187
himself, or mark the BE to the AC/DC (Audit) for confirmation and issue of a
consultative letter or demand note. The CL or a demand note will be issued only if
the same is further approved by ADC/ JC (Audit). In the abridged version, the facility
of changing the parameters is restricted to duty linked parameters like notifications,
rates of duty etc., Value linked parameters like loading (item level/invoice level),
quantity, enhancement of unit price, are not currently available. These will be
provided in the full version. Thus if the consultative letter/ SCN requires a change in
the parameters that are currently not available on the system, men the duty
computation has to be done offline in the file. However such details should be
entered in the departmental comments field in the ICES. It is reiterated that issue of
a consultative letter / SCN will happen only with the prior approval of Additional/Joint
Commissioner (Audit). The abridged version also does not currently have the
provision for system generated issue of consultative letter / SCN with duty
quantification. (v) The PCA workflow in the ICES also envisages generation and
issue of advisories to the importer. Monitoring and improving the data quality of
declarations by the importer is one of the important functions of the Audit in the postaudit regime. Audit officers can issue advisories to the importer with a view to
improving data quality of declarations. An advisory will work in a manner similar to a
query and will be issued only after approval by AC/DC (Audit). The key difference
between a query and an advisory is that while a query is a request for
information/documents from the importer, and holds up the BE from further
processing until a reply is received, no reply is envisaged for an advisory. Advisories
should be resorted to in cases not involving revenue implications. The facility for
issue of advisories through the ICES will be enabled in the full version. Pending the
same, the advisories can be issued manually from the audit files.
(vi) If the Audit Officer decides to raise an audit point which has revenue implications
he can propose one of the following options to the AC/DC (Audit) for approval I
1.
Issue of a consultative letter (Compliance advisory)
2.
Issue of a demand note
A consultative letter is a mechanism to promote the culture of voluntary compliance
by importers in the audit process. It is a tool to operationalise the benefits to the
importer by paying up the duty/ interest indicated in the consultative letter. The
188
consultative letter has to be approved by AC/DC (Audit) and further by ADC/JC
(Audit) before it gets issued to the importer. On receipt of the Consultative Letter the
importer is expected to comply with the same within 30 days of issue. If he agrees to
pay the amount indicated in the consultative letter, then the ICES will generate a
challan for the differential duty with interest, and provides for capture of payment
details also. After the payment details are captured, a message will be sent to the
RMS and the BE will move to history in the ICES. If the importer does not agree with
the consultative letter, or simply refuses to respond within the stipulated period, the
Audit Officer can propose issue of a demand note, which may be issued after
consideration and approval by AC/DC (Audit) and ADC/JC (Audit). These activities
have to be done manually at present pending the introduction of the full feature
module.
The Audit Officer can, instead of proposing issue of a consultative letter upon
detection of short levy or non-levy or short payment or non-payment, propose
immediate and direct issue of a demand note. This may be necessary in cases
where willful misdeclaration, fraud, suppression clauses have to be invoked and
where a consultative letter may not be the right course of action and a demand note
could be issued directly. The demand note will have to be issued manually at
present. After the introduction of the full module, the ICES will issue the demand
note (SCN) after the auditors enter the basic information. (vii) Upon issue of a
demand note, the adjudication takes place offline and the net result of first
adjudication will also be captured on the ICES. The details of demand
confirmed/dropped, penalties and fines imposed will be captured in the ICES and
sent to the RMS. These features will also be available in the full version. After
sending the details to the ICES the BE will move into history.
6.57.
Ensuring Availability of dockets for PCA:
As is apparent from the above, effective working of PCA depends critically on
availability of dockets with the audit officers. The designated officer in the audit
section will generate a report of daily list of BE selected for PCA, using the report
made available on the LRM for this purpose. Copies of this report should be sent to
AC/DC shed. AC/DC should nominate an officer under his charge and entrust him
189
with the responsibility of segregating dockets as per the list circulated by audit. The
dockets (with the checklists) selected for PCA should be aggregated and sent to
Audit section with a covering note giving the list of BEs being sent. The receipts of
the dockets will be acknowledged by audit section by an officer designated for this
purpose by the AC/DC (audit). The rest of the dockets should be sent to the CRA
with a forwarding memo listing the BE No's as per existing practice.
6.58. Ensuring un-interrupted messaging between the ICES and RMS:
The ICES System Manager will designate officers in the EDI section for monitoring
flow of EOD messages from the ICES to the RMS and also the reverse flow of PCA
messages from RMS to ICES. Any interruption in the same should be brought to the
notice of the LRM or the Addl / Joint Commissioner of Audit as the case may be. The
system manager will ensure that all the B/Es which have been given out of charge,
are submitted to the RMS in the EOD files. If BEs are not selected for PCA by the
RMS, such BEs will be sent to history. Only the selected BEs will be queued by the
ICES to the audit officers for PCA. ICES will send to history all BEs for which no PCA
message is received.
6.59. Provisional Assessment:
Whenever there is a relationship between the importer and the supplier, as defined
in the Customs valuation rules, the importer/ CHA may indicate this requirement in
the relevant SVB columns in the Annexure filed at the service centre /'through
ICEGATE. The ICES will assess the BE provisionally based on this indication. The
LRM should designate officers under his charge to monitor SVB issues. Such officer
should analyze and track all such Importers Bills which do not have necessary SVB
declaration. Similarly whenever any BE is selected for assessment or Examination
the officers processing all such bills should ensure that the declaration if any
regarding SVB aspect is properly declared It may be noted that goods registration
cannot be done without proper debit of bonds. For expeditious clearance of goods
the importer /CHA has been advised to equip himself to comply with all the bond related requirements before filing the BE.
6.60. Administration of Risk Management System locally:
190
The RMS machine installed in the Custom houses is known as Local Risk
Management (LRM) system. This system is in the same Local Area Network as the
ICES. The National Risk Management (NRM) system is in the ICENET and hence
connected to the LRM. The Additional/Joint Commissioner in charge of SIIB is
designated as the System Administrator of LRM. A detailed user manual for LRM is
provided to all the officers working in the LRM. The DC/AC and the nominated
officers working in SIIB will be given user IDs and passwords in the LRM by the
Systems Administrator. The users must change their assigned passwords in LRM by
immediately logging and changing passwords at regular intervals. In addition to
handling the Targeting and Intervention activities assigned to them, all LRM users
should be vigilant about all such bills of entry which are getting facilitated and are
being sent for clearance without any assessment or examination. Discrepancy if any
found in respect of such bills should be immediately brought to the notice of the LRM
for further action.
6.61. Charging of interest on Customs Duty
Further, Section 47 of the Customs among other things stipulates that if the
proper officer is satisfied that the goods entered for home consumption are not
prohibited goods and the importer has paid duty and other dues chargeable, the
proper officer may make an order permitting clearance of the goods, for home
consumption.
The Section also stipulates that if the importer fails to pay import duty within 5
days from the date on which the B/E has returned to him for payment of duty, he
shall pay interest at the rate fixed by the Board, on such duty till the date of payment
of the said duty.
However, Section 49 of Customs Act, 1962, empowers Asstt. Commissioner
of Customs, to permit the goods entered for home consumption to be stored in a
public or private warehouse pending clearance if he is satisfied that the goods
cannot be cleared within a reasonable time. However, such goods shall not be
deemed to be warehoused goods for the purpose of the Customs Act.
6.62. UNCLEARED / UNCLAIMED IMPORTED CARGO
191
Many a times it is observed that the imported goods landed at a customs
station are either not cleared within stipulated time or are relinquished title thereof,
by the importer. Section 48 contains the provision to deal with such goods. The
Section stipulates that such goods may be sold by (the custodians) after notice to the
importer and with the permission of the proper officer, if such goods are not cleared
for home consumption or warehoused or transshipped within 30 days from the date
of unloading thereof or within such further time as the proper officer may allow.
The Section further prescribes that perishable goods & hazardous goods may
be sold at any time and also that arms & ammunition may be sold at such time and
place and in the manner directed by the Central government.
192
CHAPTER –SEVEN
7.
EXPORT CLEARANCE PROCEDURES
7.1.
EXPORT GOODS
As defined in Section 2(19) of the Customs Act, 1962, Export goods means
any goods, subject to the provisions of Section 11 of the Customs Act, 1962, which
are to be taken out of India to a place out of India.
7.2.
EXPORT CLEARANCE
Export of goods produced in a country also plays an important role in the
economy of a country as it not only generates new opportunities for the Trade but
also helps in building Foreign Exchange Reserve of the country.
Our country has many items on its Export list which are either manufactured
indigenously or are available naturally. The Exports from our country expand to
many countries all over the world.
Though exporting goods from India entails many procedures to be completed
with Departments like Director General of Foreign Trade, Reserve Bank of India,
Export Promotion Councils, Banks, etc., clearance of goods for Export is also an
important aspect of Customs work. Over the period of time, the Govt. has introduced
many schemes for promotion of Export from India and has simplified procedures
thereof. The Customs Department has to enforce statutes of other Departments, in
addition to the Customs Laws, applicable to the Export of goods
7.3.
Broad procedure for Clearance of Export Goods
The broad procedure for clearance of goods for Export may be described
briefly as follows :
The Exporter of goods presents a Shipping Bill or Bill of Export in the Export
Department of the Custom House and the same is given a running serial No. with
date. Thereafter, it is submitted to the Appraiser in the Export Department along with
required documents , licences, samples, etc., if any.
After scrutiny of particulars declared in the Shipping Bill / Bill of Export and
after verification of appended documents, the group Appraiser then makes an order
on the reverse of the Shipping Bill / Bill of Export for any examination/ inspection of
cargo. The Export goods are then carted to the Docks/Cargo Complex and
presentation to the Appraising staff for examination/inspection along with processed
193
Shipping Bill / Bill of Export. The Shed Appraiser /Superintendent (P), in the light of
this order, examines the cargo and if everything is in order, gives a “let export” order
whereby permitting the clearance and loading of the goods for Exportation.
Thereafter, the so passed Export goods are loaded on the vessel/aircraft/vehicle
under the supervision of the Preventive Staff and received on board by the Master /
Agent. Copies of the Shipping Bills / Bills of Export pertaining to all the cargo loaded
on the vessel/aircraft/vehicle are then attached with the Export Manifest and
submitted to the Export Deptt of the Custom House by the Agents.
With the commencement of EDI Service Centres in many Custom Houses,
the Shipping Bills and other Export Procedures are being processed electronically.
7.4.
Categories of Shipments
The following are the various categories of shipments: a. Shipment of “Free” goods to Customs Ports.
b. Shipment of “Free” good to Foreign ports.
c. Shipment of dutiable and / or cessable goods
d. Shipment of bonded goods.
e. Shipment under claim for “Drawback”.
f. Transhipment
g. Reshipment and
h. Shipment of goods under claim for rebate of Central Excise Duties,
Railway Freight and Sales Tax, under Export Promotion Schemes and
under various procedures introduced by the Government from time to time.
7.5.
Shipment of goods without Shipping Bills
1. The following classes of goods may be shipped without production of a Shipping
Bill.
a. Passenger‟s Baggage
b. Mail
c. Ballast urgently required for the safety of the vessel.
d. Ice
e. Parcels of samples of no value.
f. Live stock
194
g. Fresh provisions required for the immediate use of a vessel in harbour
Daily Bazar i.e. fresh vegetable, fruits, chicken, mutton, fish in reasonable
quantity.
h. Goods shipped to vessels in the Defence Services of the Government of
India.
2. The production of Shipping Bills may be dispensed with in the case of (1) ballast.
(2) coal when shipped as cargo or for Bunder / harbour use. If in large quantity,
Shipping Bill should be filed within 48 hours after shipment is completed on the
strength of the guarantee to be executed by the shippers.
3. Supply of new materials on board the vessel for repair, removal etc. shipment of
articles each as nuts, bolts, etc. which are taken on board the vessel for the
purpose of repairs, removal alteration and which do not figure in the Export
General Manifest or the store list of the vessel, shall be allowed on the strength of
application filed in duplicate by the party. No export licence shall be required for
shipment of the type of articles enumerated above.
7.6.
The Shipping Bill
The first step towards procedure for Export of any goods is that of filing a
Shipping Bill by the Exporter of the goods. Section 50 of the Customs Act, 1962,
stipulates that Exporter of any goods shall make an entry thereof by presenting a
Shipping Bill in the case of goods to be Exported in a vessel or aircraft, and a Bill of
Export in case of goods to be Exported by land. This Section also makes it
mandatory for the Exporter to enclose at the foot of the Shipping Bill / Bill of Export, a
declaration as to the truth of the contents of the same.
The Shipping Bill is the most important document for the purpose of Customs
Clearance of Export goods. It contains the details about the Exporter, the goods to
be Exported, Exporter‟s code no., port of destination, value of goods etc. The
Shipping Bill is the document which is required to be presented by the Exporter right
from the stage of noting to the actual shipment of goods and also for processing of
post-export formalities.
7.7.
Types of Shipping Bill
There are seven types of Shipping Bills which are used for Export of various
categories of the goods. They are briefly described below. The colour of the Shipping
Bill referred to is the colour of the paper on which the same are printed : -
195
(a) Shipping Bill for free goods: All the Export goods whereon no duty or cess is
levied on the export thereof or where no Duty Draw-back is being claimed or the
goods are not exported under the D.E.E.C. Scheme or the goods are not being
exported under Bond, then in case of all such goods, the Shipping Bill for Export
of such goods is called the „free Shipping Bill‟. It is white in colour.
(b) Shipping Bill for Dutiable goods : Where the Export goods are liable to either
duty or cess, then the Shipping Bill
for export of such goods is called the
„dutiable Shipping Bill‟. It is yellow in colour.
(c) Shipping Bill under Duty Draw-back: Where the Export goods are under claim
for Duty Draw-back, the Shipping Bill for export in such case is called a „Drawback Shipping Bill‟. It is green in colour.
(d) D.E.E.C. Shipping Bill: Where Export goods are shipped as fulfillment of
conditions against duty free imports or as advance export for duty free
entitlement, the document for export is called „DEEC Shipping Bill‟. It is white in
colour if no draw back is claimed, and green if Draw-back is claimed.
(e) Shipping Bill for Bonded goods: When goods manufactured in bonded
premises, using Imported goods on which no duty has been paid, are to be
exported, then an „ex-bond Shipping Bill‟ is used. It is green in colour.
(f) 100% EOU Shipping Bill : 100% EOUs are required to file „pink Shipping Bill‟ for
Export of their consignments .
(g) Duty Entitlement Pass Book Scheme (DEPB) Shipping Bill: The Shipping Bill
introduced under Duty Entitlement Passbook scheme is of blue colour.
7.8.
Electronic Shipping Bill
With the introduction of computerisation, many Custom Houses are now
having a full fledged centralised Electronic Data Interchange Centres, which receive,
store and transmit various data to different formations as and when required.
Briefly stated the Electronic Shipping Bills are Shipping Bills generated as
computer print outs in prescribed formats at the places of examination / shipment of
cargo with the help of information / data furnished by the Exporters in respect of their
Export goods and compiled & processed at EDI Centre in the Custom House. The
information is then transmitted to the designated EDI Centres in the Docks/Cargo
Complexes and other places to facilitate the examination/inspection and subsequent
shipment of the Export cargo.
196
The details regarding the Electronic Shipping Bill and related procedures for
clearance of Export goods through them are discussed in the Chapter “ Electronic
Data Interchange” of this Manual.
7.9.
Requirement of documents to be filed along with Shipping Bill
In order to effect Export , various types of Shipping Bill are used according to
the nature and category of the goods. Along with the respective Shipping Bill, the
Exporter or his agent has to submit the following documents:
1. Export invoice.
2. Packing list.
3.
G. R. Form/SDF.
4. Certificates from other agencies.
5.
Other compulsory certificates/licences under allied Acts if any.
6.
Other documents like AR 4 forms, etc.
7.10. Validity of Shipping Bill
Shipping Bills are valid for 90 days from the date of noting. However for aircargo Shipping Bills the validity is for 30 days from noting of the Shipping Bill. Before
the expiry of the Shipping Bill, the same can be re-validated by a validation
application and on payment of amendment charges. After the expiry of the Shipping
Bill the same has to be canceled and fresh Shipping Bill is required to be noted. The
re-validation can be done only once. Thereafter a new Shipping Bill has to be filed.
7.11. Shipping Bill and Bill of Export (Form) Regulations, 1991
In exercise of the powers conferred by section 157, read with sections 50 and
69, of the Customs Act, 1962 (52 of 1962), and in supersession of the Shipping Bill
and Bill of Export (Form) Regulations, 1976, except as respect things done or
omitted to be done before such supersession, the Central Board of Excise and
Customs hereby makes the following regulations, namely: 1. Short title and Commencement. (1) These regulations may be called the
Shipping Bill and Bill of Export (Form) Regulations, 1991.
(2) They shall come into force on the 1st day of October 1991.
2. Shipping Bill. A shipping bill to be presented by an exporter of goods shall
be in the form specified in Annexure I, Annexure II, Annexure III or Annexure IV, as
the case may be, appended to these regulations.
197
3. Bill of Export. A bill of export to be presented by an exporter of goods be
in the form specified in Annexure V, Annexure VI, Annexure VII or Annexure VIII, as
the case may be, appended to these regulations.
4. Specifications of Shipping Bill and Bill of Export (Form). The Shipping
Bill and Bill of Export forms specified in Annexures I to VIII or Annexure VIII shall be
in accordance with the following specifications, namely: (a) the forms shall be printed on foolscap size of paper measuring 34.5 cms
by 21.5 cms and shall have the following margins namely:(i) top – 1.5 cms,
(ii) bottom – 1.5 cms
(iii) left – 1.8 cms,
(Iv) right – 0.5 cms.
The layout of the forms and the sizes of the boxes shall be as per the layout
and boxes shown in the Annexures;
(b) the forms shall be printed on paper of grammage 70 to 85 grams per
square metre; the paper should be stable in conditions of 50 to 60 per cent
relative humidity;
(c) the captions inside the boxes of the forms should be printed in 6 pt. Mono
sans-serif and should be located as near as possible to the top left of the
boxes;
(d) the forms shall be filled in by using a typewriter only.
ANNEXURE – I
Shipping Bill For Export Of Goods Under Claim For Duty Drawback
Exporter
Invoice No. and Date
SB No. and Date
AR4/AR4A No. and Date
Consignee
Q/Cert No. and Date
Import–Export
Code
No.
RBI Code No.
Customs House
LIC Export Trade Control
If export under:
No.
Deferred
Agent
[ ]
Credit
198
Joint
Venture
[ ]
Rupee
Credit……..
[ ]
Others
…………….
[ ]
RBI‟s Approval/Cir. No.
and
Date
Pre-Carriage Place
of Nature of Contract: CIF [ ] Type of shipment
by
by /FOB [ ] / CFR [ ] / Others
Receipt
Pre-Carrier
Vessel/Flight Rotation No.
No.
Port
Outright
(specify)
[ ]
Consignment
of
Loading
Sale
Exchange
Export
Rate [ ]
Currency
U/S 14 of CA
Invoice
S. Marks & Nos.
of Others
(Specify)
[ ]
No. and kind of Pkgs.
Statistical Code/and
Quantity
Value FOB
No.
Container Nos.
Description of Goods
Net Weight
Gross Weight
Total FOB Value in words
Analysis of Export Value
Amount
Currency Full export value OR where not
ascertainable,
the
value
which
exporter expects to receive on the
FOB
……………………………………
Freight
…………………………………..
Value sale of goods.
199
Insurance
Currency …………………
…………………………………..
Amount …………………..
Commission
………….…Rate………………
Discount
…………………………………..
Other
…………………………………..
Deductions
…………………………………..
Sl.
Expo
Assess
No rt
a-ble
.
Tariff
Value
No.
under
DUTY
Rate
CESS
Amount Rate
Total
Amount
Duty
Duty and payment
Cess
particula
rs
Sec. 14
of CA
Collectio
Total Duty/Cess Amount in words: Rupees
n Stamp
Declaration:
I/We Declare that all particulars given herein are true and correct.
I/We also attach the declaration(s) under clause No.(s) …………..
Public Notice No. ……………dated ………… Signature and Date
I/We claim drawback of Rs…………. under
DOCUMENTS
Sec. 74/75 of Customs Act, 1962 and Customs and SUBMITTED
Central Excise Duty Drawback Rules, 1971. I/We 1.
certify
that
the
export
goods
are
Invoice
new/used [ ]
for…….I/We certify that I/We have complied with the 2.
Packing
List
conditions laid down in the said Rules 1971 and the [ ]
conditions subject to which Drawback Rates are 3.
applicable.
[ ]
GR
Form
200
4.
1. Name
and
Address
of
AR-4/AR-4A
Form
Bank [ ]
………………………….
5.
2. Account No………………………………..
[ ]
3. Drawback Ledger No. …………………….
6.
ETC
Licence
Indent
[ ]
7. Acceptance of Contract
[ ]
8.
Letter
of
Credit
[ ]
9.
QC
Certificate
[ ]
10. Port Trust Document
[ ]
11. Any other (Specify)
[ ]
Item
S.
No. Qty/Wt.
No.
and
S.
Sub S. which
which
B.
Mo.
DBK
On
of DBK
Value
Amount of DBK
Excise
Excise
on
DBK
Claime
claime
Schedu
d
d
le
Rate of DBK
Custom
s
Customs
Total
201
Total Amount in words Rupees ……………
………………………………………………….
Signature
of
Exporter/CHA
___________________________________________________________________
_____________
FOR DEPARTMENT OFFICER
Verified that the amount of
PRE-RECEIPT FORM
Calculation
Received the sum of
Rs……………………..
DBK as claimed above is ad-
Checked
as drawback.
Missible subject to description
REVENUE
Found correct on the basis of
STAMP
Physical examination/test etc.
Signature of A.O. Stamp
Comptist
Signature of Exporter /
CHA
„LET EXPORT‟
„ALLOWED FOR SHIPMENT‟
Signature of Officer of
Customs
Signature
of
Officer
of
Customs
Vessel‟s name may be altered after check with original
Fee
Rs.
Entry for
Fresh one may be granted to ……………..
for
the
portion
shutout
or
not
shipped
Received
Handed over to C.H.A./Party
Cashier
Asstt. Commissioner
202
Contents Received on Board
Date
Date of Shipment
Signature of Master of
Vessel
Signature of Officer of
Customs
Examination Order and Report
Verified Mate‟s Receipt No. ………………… of ………….. Issued by………………. For
…………………
Cases/Bales/Packages/Containers……………… Shipped per………………. Which
sailed on…………..
From…………….. Under Preventive Supervision
Signature of Officer of Customs
OR
Shipment declared on this Shipping Bill has been air freighted on Flight
No……………… Dated……….
AWB
No…………………………..
EGM
No.
……………………………..
Under
Preventive Supervision in full/part (Specify quantity airfreighted).
Signature of Officer of Customs
ANNEXURE – I I
Shipping Bill For Export Of Dutiable Goods
Exporter
Invoice No. and Date
SB No. and Date
AR4/AR4A No. and Date
Consignee
Q/Cert No. and Date
Import–Export
No.
Code
203
RBI Code No.
Customs House
LIC Export Trade Control
If export under:
No.
Deferred
Agent
[ ]
Credit
Joint
Venture
[ ]
Rupee
Credit……..
[ ]
Others
…………….
[ ]
RBI‟s Approval/Cir. No.
and
Date
Pre-Carriage Place
of Nature of Contract: CIF [ ] Type of shipment
by
by /FOB [ ] / CFR [ ] / Others
Receipt
Pre-Carrier
Outright
(specify)
[ ]
Consignment
Vessel/Flight Rotation No.
No.
Port
Loading
of Exchange
Currency
U/S 14 of CA
Sale
Export
Rate [ ]
of Others
Invoice
(Specify)
[ ]
______________________
____
Port of
Country
of
Discharge
Destination
S. Marks & Nos.
No. and kind of Pkgs.
Statistical Code/and
Value FOB
No.
Container Nos.
Net Weight
Gross Weight
Description of Goods
Quantity
204
Total FOB Value in words
Analysis of Export Value
Amount
Currency Full export value OR where not
ascertainable,
the
value
which
exporter expects to receive on the
FOB
Value sale of goods.
……………………………………
Freight
…………………………………..
Insurance
Currency …………………
…………………………………..
Amount …………………..
Commission
………….…Rate………………
Discount
…………………………………..
Other
…………………………………..
Deductions
…………………………………..
Sl.
Expo
Assess
No rt
able
.
Tariff
Value
No.
under
Sec. 14
of CA
DUTY
Rate
CESS
Amount Rate
Total
Amount
Duty
Duty and payment
Cess
particula
rs
205
Total Duty/Cess Amount in words: Rupees
Collectio
n Stamp
Declaration:
I/We Declare that all particulars given herein are true and correct.
I/We also attach the declaration(s) under clause No.(s) …………..
Public Notice No. ……………dated ………… Signature and Date
DOCUMENTS
SUBMITTED
1.
Invoice
[ ]
2.
Packing
List
[ ]
3.
GR
Form
AR-4/AR-4A
Form
[ ]
4.
[ ]
5.
ETC
Licence
[ ]
6.
Indent
[ ]
7. Acceptance of Contract
[ ]
8.
Letter
of
Credit
[ ]
9.
QC
Certificate
206
[ ]
10. Port Trust Document
[ ]
11. Any other (Specify)
[ ]
„LET EXPORT‟
„ALLOWED
FOR
SHIPMENT‟
Signature of Officer of
Customs
Signature
of
Officer
of
Customs
Vessel‟s name may be altered after check with original
Fee
Rs.
Entry for
Fresh one may be granted to ……………..
for
the
portion
shutout
or
not
shipped
Received
Handed over to C.H.A./Party
Cashier
Asstt. Commissioner
207
Contents Received on Board
Date
Date of Shipment
Signature of Master of
Vessel
Signature of Officer of
Customs
Examination Order and Report
Verified Mate‟s Receipt No. ……………… of ………….. Issued by………………. For
…………………
Cases/Bales/Packages/Containers……………… Shipped per………………. Which
sailed on………….. From…………….. Under Preventive Supervision
Signature of Officer of Customs
OR
Shipment declared on this Shipping Bill has been air freighted on Flight
No………………
Dated……….AWB
No…………………………..
EGM
No.
…………………………….. Under Preventive Supervision in full/part (Specify quantity
airfreighted).
Signature of Officer of Customs
ANNEXURE – I I I
Shipping Bill For Export Of Duty Free Goods
208
Exporter
Invoice No. and Date
SB No. and Date
AR4/AR4A No. and Date
Consignee
Q/Cert No. and Date
Import–Export
Code
No.
RBI Code No.
Customs House
LIC Export Trade Control
If export under:
No.
Deferred
Agent
[ ]
Joint
Credit
Venture
[ ]
Rupee
Credit……..
[ ]
Others
…………….
[ ]
RBI‟s Approval/Cir. No.
and
Date
Pre-Carriage Place
of Nature of Contract: CIF [ ] Type of shipment
by
by /FOB [ ] / CFR [ ] / Others
Receipt
Pre-Carrier
Outright
(specify)
[ ]
Consignment Export
Vessel/Flight Rotation No.
No.
Port
Loading
Sale
of Exchange
Currency
U/S 14 of CA
Rate ]
of Others
[ ]
Invoice
Port of
Discharge
Destination
[
Country of
(Specify)
209
S. Marks & Nos.
No. and kind of Pkgs.
Statistical Code/and
Quantity
Value FOB
No.
Container Nos.
Description of Goods
Net Weight
Gross Weight
Total FOB Value in words
Analysis of Export Value
Amount
Currency Full export value OR where not
ascertainable,
the
value
which
exporter expects to receive on the
FOB
Value sale of goods.
……………………………………
Freight
…………………………………..
Insurance
Currency …………………
…………………………………..
Amount …………………..
Commission
………….…Rate………………
Discount
…………………………………..
Other
…………………………………..
Deductions
…………………………………..
Sl.
Expo
Assess
DUTY
CESS
Total
Duty
210
No rt
able
.
Tariff
Value
No.
under
Rate
Amount Rate
Amount Duty and payment
Cess
particular
s
Sec. 14
of CA
Collectio
Total Duty/Cess Amount in words: Rupees
n Stamp
Declaration:
I/We Declare that all particulars given herein are true and correct.
I/We also attach the declaration(s) under clause No.(s) …………..
Public Notice No. ……………dated ………… Signature and Date
DOCUMENTS
SUBMITTED
1.
Invoice
[ ]
2.
[ ]
Packing
List
211
3.
GR
Form
AR-4/AR-4A
Form
[ ]
4.
[ ]
5.
ETC
Licence
[ ]
6.
Indent
[ ]
7. Acceptance of Contract
[ ]
8.
Letter
of
Credit
[ ]
9.
QC
Certificate
[ ]
10. Port Trust Document
[ ]
11. Any other (Specify)
[ ]
„LET EXPORT‟
„ALLOWED
FOR
SHIPMENT‟
Signature of Officer of
Customs
Signature of Officer of Customs
212
Vessel‟s name may be altered after check with original
Fee
Rs.
entry for
Fresh one may be granted to ……………..
for
the
portion
shutout
or
not
shipped
Received
Handed over to C.H.A./Party
Asstt. Commissioner
Cashier
Contents Received on Board
Date
Date of Shipment
Signature of Master of
Vessel
Signature of Officer of
Customs
Examination Order and Report
Verified Mate‟s Receipt No. ………………… of ………….. Issued by………………. For
…………………
Cases/Bales/Packages/Containers……………… Shipped per………………. Which
sailed on…………..
From…………….. Under Preventive Supervision
213
Signature of Officer of Customs
OR
Shipment declared on this Shipping Bill has been air freighted on Flight
No……………… Dated……….
AWB
No…………………………..
EGM
No.
……………………………..
Under
Preventive Supervision in full/part (Specify quantity airfreighted).
Signature of Officer of
Customs
ANNEXURE – I V
Shipping Bill For Export Of Duty Free Goods Under Ex-Bond
Exporter
Invoice No. and Date
SB No. and Date
AR4/AR4A No. and Date
Consignee
Q/Cert No. and Date
Import–Export
Code
No.
RBI Code No.
Customs House
LIC Export Trade Control
If export under:
No.
Deferred
Agent
[ ]
Joint
Credit
Venture
[ ]
Rupee
Credit……..
[ ]
Others
…………….
[ ]
RBI‟s Approval/Cir. No.
and
Date
214
Pre-Carriage Place
of Nature of Contract: CIF [ ] Type of shipment
by
by /FOB [ ] / CFR [ ] / Others
Receipt
Pre-Carrier
Outright
(specify)
[ ]
Consignment Export
Vessel/Flight Rotation No.
No.
of Exchange
Currency
Port
Loading
Sale
U/S 14 of CA
[
Rate ]
of Others
(Specify)
[ ]
Invoice
Port of
Country
of
Discharge
Destination
S. Marks & Nos.
No. and kind of Pkgs.
Statistical Code/and
Quantity
Value FOB
No.
Container Nos.
Description of Goods
Net Weight
Gross Weight
Total FOB Value in words
Analysis of Export Value
Amount
Currency Full export value OR where not
ascertainable,
the
value
which
exporter expects to receive on the
FOB
Value sale of goods.
……………………………………
Freight
…………………………………..
Insurance
Currency …………………
215
…………………………………..
Amount …………………..
Commission
………….…Rate………………
Discount
…………………………………..
Other
…………………………………..
Deductions
…………………………………..
Import particulars of Bonded Goods
Bill of Entry
Vessel‟s Name and
No. of
Bond No.
Name
of Bonded
No. & Date
Rotation No.
Packages
& Date
Warehouse
Declaration:
I/We Declare that all particulars given herein are true and correct.
I/We also attach the declaration(s) under clause No.(s) …………..
Public Notice No. ……………dated …………
Signature
and
Date
DOCUMENTS
SUBMITTED
1.
Invoice
216
[ ]
2.
Packing
List
[ ]
3.
GR
Form
AR-4/AR-4A
Form
[ ]
4.
[ ]
5.
ETC
Licence
[ ]
6.
Indent
[ ]
7. Acceptance of Contract
[ ]
8.
Letter
of
Credit
[ ]
9.
QC
Certificate
[ ]
10. Port Trust Document
[ ]
11. Any other (Specify)
[ ]
„LET EXPORT‟
Signature of Officer of Customs
„ALLOWED FOR SHIPMENT‟
Signature of Officer of Customs
217
Vessel‟s name may be altered after check with original
Fee
Rs.
entry for
Fresh one may be granted to ……………..
for
the
portion
shutout
or
not
shipped
Received
Handed over to C.H.A./Party
Asstt. Commissioner
Cashier
Contents Received on Board
Date
Date of Shipment
Signature of Master of
Vessel
Examination Order and Report
Verified Mate‟s Receipt No. ………………… of ………….. Issued by………………. For
…………………
Cases/Bales/Packages/Containers……………… Shipped per………………. Which
sailed on…………..
218
From…………….. Under Preventive Supervision
Signature of Officer of Customs
OR
Shipment declared on this Shipping Bill has been air freighted on Flight
No……………… Dated……….
AWB
No…………………………..
EGM
No.
……………………………..
Under
Preventive Supervision in full/part (Specify quantity airfreighted).
Signature of Officer of Customs
7.12. DECLARATION TO BE FILED IN CASE OF EXPORT OF GOODS UNDER
CLAIM FOR DRAWBACK
I / We . . . . . . . . . . . . . . . . . (name of the exporter)………. do hereby declare as
follows: -
(a) that the quantity and specifications of the goods as stated in this Shipping Bill
are in accordance with the terms of the export contract entered into with the
buyer / consignee in pursuance of which the goods are being exported;
(b) that the duties of Customs and Central Excise have been paid in respect of
the containers, packing materials and other materials used in the manufacture
of the export goods on which drawback is being claimed and that in respect of
such containers, packing materials or other materials, no separate claim for
rebate of duty under Rule 12A or Rule 191A of the Central Excise Rules, 1944
has been made or will be made to the Central Excise authorities;
(c) that there is no change in the manufacturing formula and in the quantum per
unit of the imported materials or components if any, utilised in the
219
manufacture of export goods; and that the materials or components, which
have been stated in the application under Rule 6 or Rule 7 to have been
imported, continue to be so imported and are not being obtained from
indigenous sources;
(d) that the present market value of the goods is as follows: (e) that the goods are not manufactured and / or exported in discharge of export
obligation against an advance licence issued under the Duty Exemption
Scheme vide relevant import and export policy in force;
(f) that the goods are not manufactured and / or exported by a unit licenced as a
100% export oriented unit in terms of the import and export policy in force;
(g) that the goods are not manufactured and / or exported by a unit situated in
any Free Trade Zone/Export Processing Zone or any such other Zone;
(h) that the goods are not manufactured partly or wholly in bonds under Sec. 65
of the Customs Act, 1962;
(i) that the goods are not manufactured partly or wholly in bond under Rule 191
B of the Central Excise Rules, 1944;
(j) that the export value of each of the goods covered by this shipping bill is not
less than the total value of all imported materials used in the manufacture of
such goods.
[Note: Strike out the declaration whichever is not applicable]
Name and Signature of the exporter. . . . . . . . . . . . . . . . . . . . . . . .
ANNEXURE – II
7.13. DECLARATION TO BE FILED IN THE CASE OF EXPORT OF GOODS
UNDER THE D.E.E.C. SCHEME
I / We . . . . . . . . . . .(Name of the Exporter)……………..do hereby declare as
follows: -
220
That the goods to be exported under this Shipping Bill are the products
corresponding to the export products specified against Sl. No. . . . . . . in part (e) of
the DEEC No. . . . . . . . . . . dated . . . .. . . . . issued by the Joint / Deputy Chief
Controller of Imports and Exports . . . . . . (Name of the office)……
(a) That the following raw materials / components / consumables have been
used for the manufacture of good covered under this shipment, namely: Sl.
Descriptio
No.
n
Quantity
Technical
Quantity
Characteristics
Whether Imported/
Indigenous
(b) that I / We are not availing the benefit of the provisions of Rule 191 A or
Rule 191 B of the Central Excise Rules, 1944,
OR
that I / We are availing the benefit of the provisions of Rule 191 A or Rule
191 B of the
Central
Excise Rules, 1944 in respect of . . . . . . .
. . . . . . (name of the item)……….
[Note: Strike out the declaration whichever is not applicable]
Name and Signature of the exporter . . . . . . .. . . . . . . . . . .
(for use by the Customs authorities)
Shipping Bill No. and Date . . . . . . . . . . . . . . . . .
Name and Signature of the Customs Officer . . . . . . . . . . . . .
ANNEXURE – III
7.14. DECLARATION TO BE FILED IN THE CASE OF EXPORT OF GOODS IN
ANTICIPATION OF ISSUE OF AN ADVANCE LICENCE / DEEC
I / We . . . . . . . . . . . . . . . . (Name of the exporter) do hereby declare as
follows: -
221
(a) that the shipment is in pursuance of discharge of the export obligation
against export order No. . . . . . . . . dated . . . . . . . . and
(b) I / We request for registration of the shipping bill in anticipation of the grant
of an Advance Licence / DEEC for which we have already applied to the
Licensing Authority, namely
Vide our application No. . . . . . . . . . . . . . dated . . . . . . . . . . . and for which I
/ We have obtained the letter of permit / receipt No. . . . . . . . . . . dated . . . . . .
. . . . . from the said Licensing Authority.
(c) that the following raw materials / components / consumables have been
used for the manufacture of goods covered under this shipment, namely: -
Sl.
Description
Quality
No.
Technical
Quantity
Characteristics
Whether
Imported/
Indigenou
s
(d) that I / We are not availing the benefit of the provisions of Rule 191 A or
Rule 191 B of the Central Excise Rules, 1944
OR
That I / We are availing the benefit of the provisions of Rule 191 A or Rule
191 B of the Central Excise Rules, 1944 in respect of . . . . . . . . . . . . . . .
(name of the item)……….
[Note: Strike out the declaration whichever is not applicable]
Name and Signature of the Exporter . . . . . . . . . . . . . .
(For use by the Customs authorities)
Shipping Bill No. and Date . . . . . . . . . . . . .
Name and Signature of the Customs Officer . . . . . . . . . . . . . . . . . .
222
ANNEXURE – IV
7.15
DECLARATION
TO
BE
MADE
ON
SHIPPING
BILLS
FOR
CONSIGNMENTS COVERED BY AR – 4A PENDING WEIGHMENT AT THE
DOCKS
In consideration of the [Commissioner of Customs] agreeing to assess the
goods on the declared weight pending verification by reference to AR – 4A Forms, I /
We . . . . . . . . . . . . . (name of the exporter) do hereby agree: (a) to pay way extra duty / cess leviable on the goods covered by the Shipping
Bill, and
(b) to produce the AR – 4A Forms covering the shipment to the Customs
House within 15 days of the shipment of the goods.
[Note: Strike out the declaration whichever is not applicable]
Name and Signature of the exporter . . . . . . . . . . . . . . . . .
(For use by Customs authorities)
Shipping Bill No. and Date . . . . . . . . . . . . . . . .
Name and Signature of the Customs Officer . . . . . . . . . . . . . .
ANNEXURE – V
7.16
DECLARATION TO BE MADE BY EXPORTERS WHO FILED SHIPPING
BILL WITHOUT CERTIFICATE FROM THE EXPORT INSPECTION AGENCY ETC.
(a) I / We . . . . . . . . . . . . . . . . . (name of the exporter) do hereby declare that
the goods being dispatched are / shall be in accordance with the
conditions prescribed in the Export (Quality Control and Inspection) Act,
1963. Application for necessary inspection / quality control has been made
to . . . . . . . . . . . . . . . . (name of the export inspection agency) and the
same in original will be produced along with the goods at the time of
customs examination.
223
(b) I / We . . . . . . . (name of the exporter)……do hereby declare that the
goods are as per the quality control requirements under the Export
(Quality Control and Inspection) Act, 1963.
Application for the issue of the inspection / quality control certificate has
been made to . . . . . . . . . . . . . . . . . . . which is duly authorised agency to
issue such a certificate. The said certificate will be produced to the
Customs Officer for checking at the time of shipment
[Note: Strike out the declaration whichever is not applicable]
Name and signature of the exporter . . . . . . . . . . . . .
(For use by Customs authorities)
Shipping Bill No. and Date . . . . . . . . . . . .
Name and Signature of the Customs Officer . . . . . . .
7.17
PROCEDURE FOR COMPUTERISED PROCESSING OF SHIPPING BILLS
UNDER THE INDIAN CUSTOMS EDI SYSTEM-EXPORTS
computerised processing of Shipping Bills (S/B) in the Custom Houses started
in 1998.
Under the system, there would be no processing of paper documents except
statutory declarations and endorsements until “Let Export” order stage. Till such
time exporters/CHAs are given access to file documents electronically, they would
have to avail the facility of filing the documents through the Service Centre (the
Centre for short) set up in the Custom House or directly on the ICEGATE.
7.18.
PROCEDURE FOR SDF:
Under the revised procedure, exporters (includes CHAs also) would be
required to file a declaration in the form SDF (Appendix I). It would be filed at the
stage of “goods arrival”. One copy of the declaration would be attached to the
original copy of the S/B generated by the system and retained by the Customs. The
second copy would be attached to the duplicate S/B (the exchange control copy)
224
and surrendered by the exporter to the authorised dealer for collection/
negotiations.
The exporters are required to obtain a certificate from the bank and through
which they would be realising the export proceeds (Appendix 1A). If the exporter
wished to operate through different banks for the purpose, a certificate would have
to be obtained from each of the banks. The certificate would be submitted to
Customs and registered in the system. These would have to be submitted once a
year for confirmation or whenever the bank is changed.
In the declaration form (Annexure A or B) to be filed by the exporters for the
electronic processing of export documents, the exporters would need to mention
the name of the bank and the branch code as mentioned in the certificate from the
bank. The will verify the details in the declaration with the information captured in
the system through the certificates registered earlier.
In the case of S/Bs processed manually, the existing arrangement of filing
GR 1 forms would continue.
7.19.
DATA ENTRY OF SHIPPING BILLS
The procedure for registration of IEC codes, PAN numbers, CHAs licence
numbers and/or account numbers by the exporters and CHAs has already been as
detailed in the Public Notice No. 201/98 dated 28.10.98. The S/Bs cannot be
allowed in absence of registration in the system.
For the purpose of filing the S/B, the exporters would present, at the Centre,
a declaration in form Annexure A (for exports without claim for drawback) or
Annexure B (for exports under claim for drawback) along with copy of the invoice.
The guidelines for filling up these forms are at Annexures G, H, I and J. The form
should be complete and signed by the exporter or his authorised CHA. Incomplete
or unsigned forms would not be accepted.
In respect of items subject to cess, the corresponding serial number of the
Cess Schedule appended at Annexure D should be mentioned. A printed challan
generated by the system would be handed over to the exporter. The cess amount
indicated should be paid in the Cash Section of the Custom House, under a receipt.
225
In the beginning, data entry for S/B will be made only at the Centre. Later, it is
proposed to provide the facility for remote EDI connectivity and it should be
possible to file S/Bs electronically from offices of exporters or of CHAs through dialup modems using telephone lines.
The exporters would have to pay charges at the following rates to the Centre
Operator: S/Bs having up to five items
Rs.
For every additional block of five items
Rs.
Amendment fees for a block of five fields
Rs.
The declarations would be accepted at the Service Centre between 10.00
A.M to 4.30 P.M. and will be entered in the system the same day.
The validity of S/B in the system would be 15 days, after which it would stand
automatically deleted. The exporters would have to file the declarations afresh after
that.
The Centre Operator shall carefully enter the data entered in the declaration
(Annexure A or B) and hand over the resultant checklist to the exporters for
confirming the correctness of entries. The exporter would make the corrections, if
any sign the checklist and return it to the Operator. The Operator shall make
corrections in the corresponding data and submit the revised checklist to the
exporter for re-confirmation. This process would be repeated till the exporter signs
a clean checklist in token of correctness of the entered data.
On submission of the electronic S/B, the system would generate a S/B
number. The Operator would endorse it on the final checklist and return it to the
exporter. No copy of the S/B would be made available to the exporter at this stage.
However, the TR-6 challan, for payment of cess generated simultaneously would
be made available to the exporter (para 3.3 supra).
For all exports requiring examination in the docks, the procedure is detailed in
Section 7 below.
226
For all exports requiring examination outside the docks namely, Container
Freight Stations, factory premises etc., the procedure is detailed in Section 8.
7.20.
ARRIVAL OF GOODS AT EXPORT EXAMINATION SHEDS IN DOCKS
The existing procedure of permitting entry of goods, brought for the purpose
of examination (and subsequent “Let export” order), in the docks on the strength of
S/B shall be discontinued. The Chennai Port Trust (CPT) will permit entry of the
goods on the strength of CPT form B-1, the checklist, the data entry form
(Annexure C) and the declaration (Annexure A or B). CPT would endorse the
quantity of goods entering the docks in form B-1 and reverse of the checklist.
5.2.
The goods should be brought for examination within 15 days of filing of
declaration in the Centre. In case of delay, a fresh declaration would need to be
filed.
5.3.
If at any stage subsequent to the entry of goods in docks, it is noticed that
the declaration has not been registered in the system, the exporters will be solely
responsible for the delay in shipment of goods and any damage, deterioration or
pilferage.
7.21.
PROCESSING OF SHIPPING BILLS
The S/B shall be processed by the system on the basis of declaration made
by the exporter. However, the following S/B shall require clearance of the Assistant
Commissioner (AC): i.
Duty free S/B for FOB value above Rs. 10 lakh.
ii.
Free Trade Sample S/B for FOB value above Rs. 20,000.
iii.
Drawback S/B where the drawback exceeds more than Rs. one
lakh.
Apart from verifying the value and other particulars for assessment, the AC
may call for the samples for confirming the declared value or for checking
classification under the Drawback Schedule. He may also give special instruction
for examination of goods.
227
If the S/B falls in the categories indicted in para 6.1 above, the exporter
should check up with the query counter at the Centre whether the S/B has been
cleared by AC, before the goods are taken for examination. In case AC raises any
query, it should be replied through the Centre or, in case of EDI connectivity,
through terminals of the exporter/CHA. After all the queries have been satisfactorily
replied to, AC will pass the S/B.
7.22.
CUSTOMS EXAMINATION OF EXPORT CARGO
On receipt of the goods in the Export Shed („O‟ yard or JD 7) in the docks,
the exporters will contact the System Examining Officer (SEO) and present the
checklist with the endorsement of CPT, declaration along with all original
documents such as Invoice, Packing List, AR-4, etc. He will also present additional
particulars in form at Annexure C.
SEO will verify the quantity of the goods actually received against that
entered in the system. He will enter Annexure C particulars in the system. The
system would identify the Examining Officer (if more then one are available) who
would be carrying out physical examination of goods. The system would also
indicate the packages (the quantity and the serial numbers) to be subjected to
examination. SEO would write this information on the checklist and hand it over to
the exporter. He would hand over the original documents to the Examining Officer.
No examination orders shall be given unless the goods have been physically
received in the Export Shed. It may, however, be clarified that Customs may
examine all the packages/goods in case of any discrepancy.
The Examining Officer may inspect and/or examine the shipment, as per
instructions contained in the checklist and enter the examination report in the
system. There will be no written examination report. He will then mark the
Electronic S/B to and forward the checklist along with the original documents to the
Appraiser in charge. If the Appraiser is satisfied that the particulars entered in the
system conform to the description given in the original documents (including AEPC
quota and other certifications) and the physical examination, he will proceed to give
“Let Export” order for the shipment and inform the exporters. The Appraiser would
retain the checklist, the declaration and all original documents with him.
228
In case of any variation between the declaration in S/B and the documents or
physical examination report, the Appraiser will mark the electronic S/B to AC
Exports. He will also forward the documents to AC and advise the exporters to
meet him for settlement of dispute. In case the Exporter agrees with the views of
the Department, the S/B would be processed finally. Where the exporter disputes
the views of the Department, the case would be adjudicated following the principles
of natural justice.
7.23.
PROCEDURE IN CASE OF CONTAINERS STUFFED OUTSIDE DOCKS
AREA
Containers stuffed in factories would enter the CPT through Gate No. 1
(formerly „O‟ gate). CPT would permit entry in the docks on the basis of form B-1
and the checklist. Customs will verify the seal on each container and make an
endorsement on the checklist and Annexure C. Thereafter, the exporter would
present the Invoice, Annexure C and the checklist along with all the original
documents such as, Packing list, AR-4 etc., to SEO at “O” yard. SEO will enter all
the particulars along with the seal No. in the system and submit the S/B to the
Appraiser for consideration of “Let Export” order.
The samples drawn, if any, in the factory should be brought to the Export
Shed in CPT along with the container and handed over to SEO. SEO would enter
the details in the system and forward the samples to the Deputy Chief Chemist,
Custom House.
The system may require re-examination of the factory stuffed container on a
random basis. If the container is selected for re-examination by the system, the
procedure as given in para 7.2 supra will be followed. The examination would,
however, be carried out in Container Parking Yard. The Shed Appraiser may also
decide to re-examine the container in which case he will obtain the approval of AC
Export.
Either way, once the Appraiser is satisfied, he will proceed to allow “Let
Export” for the shipments and inform the exporter.
This procedure will also apply to containers stuffed in factories and sealed by
the manufacturer-exporter under notification No. 36/98-CE dated 2.9.98.
229
This procedure would, mutatis mutandis, apply to the containers stuffed in
the CFSs, till 31 December 1998 or earlier; by which time all CFSs within the
jurisdiction of Commissioner of Customs, Chennai would be provided connectivity
with the system. At the CFSs, the existing procedure would continue with the only
difference that the examination report would be recorded on the reverse of the
checklist. As soon as the connectivity is provided, procedure outlined in para 7.2
supra will become applicable.
7.24.
GENERATION OF SHIPPING BILLS
As soon as the Shed Appraiser gives “Let Export” order, the system would
print two copies of the S/B i.e., original, for Customs and the duplicate, for the
exporter. On both the copies, the Appraiser will obtain the signatures of the E.O.,
on the examination report and of the representative of the CHA, on the S/B. Name
and identity card number of the representative of the CHA should be clearly
mentioned below his signature. The Appraiser will also sign the Shipping Bill at the
specified space.
One more copy, Export Promotion copy will be generated only after the
vessel has sailed and goods have been physically exported in full. The Preventive
Officer will authenticate this copy only after verification of the Mates Receipt.
The original AEPC quota and other certificates will be retained with the
Shipping Bills and recorded in the Export Shed.
7.25.
PAYMENT OF MERCHANT OVERTIME (MOT)
For the time being the present manual system for payment of Merchant
Overtime (MOT) charges will continue.
MOT charges will be required to be paid by exporter when the goods are
examined by Customs for allowing “Let Export” beyond the normal office hours. No
charges would be required to be paid on normal working days when the
examination itself is being done for “Let Export” up to 10.00 P.M. In addition, no
charges would be required to be paid if the exporter wants the goods to be entered
in CPT/CFS only for meeting the quota deadlines.
7.26.
DRAWAL OF SAMPLES
230
Where the Appraiser of Customs orders for samples to be drawn and tested,
the Examining Officers will proceed to draw two samples from the consignment and
enter the particulars thereof along with name of the testing agency in the system.
No registers will be maintained for recording dates of samples drawn. Three copies
of the test memo will be prepared and signed by the Examining Officer, the
Appraiser and the exporter. The disposal of the three copies would be as follows: i.
Original to be sent along with the sample to the testing
agency.
ii.
Duplicate copy to be retained with the second sample.
iii.
Triplicate to be handed over to the exporter.
AC may, if he deems necessary, order for sample to be drawn for purposes
other than testing such as visual inspection and verification of description, market
value enquiry etc.
7.27.
QUERIES
With the discontinuance of the assessment of S/B in the Export Department, there
should not be any queries. The exporter, during examination, can clarify doubts, if
any. In case where the need arises for a detailed answer from the exporter, a query
can be raised in the system by the Appraiser, but would need prior approval of AC
Exports. The S/B will remain pending and cannot be printed till the exporter satisfies
the AC.
7.28.
AMENDMENTS
Corrections/amendments in the checklist can be made at the Service Centre
provided the system has not generated the S/B number. Where corrections are
231
required to be made after the generation of the S/B No. or, after the goods have
been brought in the docks/CFS, amendments will be carried out in the following
manner.
If the goods have not yet been allowed “Let Export”, AC may
i.
allow the amendment.
Where
ii.
the
Additional/Deputy
“Let
Export”
Commissioner
order
has
Exports
been
would
given,
the
allow
the
amendments.
In both the cases, after the permission for amendments has been granted, the
Assistant Commissioner (Exports) will approve the amendments on the system.
Where the print out of the S/B has already been generated, the exporter will
surrender all copies of the S/B Bill to the Appraiser for cancellation before
amendment is approved in the system.
7.29.
SHORT SHIPMENTS, SHUT OUT, CANCELLATION AND BACK TO
TOWN PERMISSIONS
AC Export will give permission for issue of short shipment certificate, shut out
or cancellation of S/B, on the basis of an application made by the exporter. The S/B
and the corresponding Bill of Lading (B/L) particulars would need to be
cancelled/modified in the system before granting such permission. AC should check
the status of the goods in the corresponding Export General Manifest (EGM), before
granting permission.
7.30.
CHANGE OF VESSEL NAME AND AMENDMENT OF FREIGHT AMOUNT
It is mandatory for the exporters to indicate vessel name in Annexure C. The
request for change in the name of vessel (and not in respect of any other
parameter, not even freight) after “Let Export” and before loading shall made by the
exporters/Steamer Agent/Shipping Line in writing to AC Exports. Superintendent
Preventive will permit the amendment and the designated P. O. will carry out the
change in the system. The system will generate an amendment No., which will be
endorsed on the application. Cancellation of “Let Export” order or re-print of S/B will
not be required for this purpose.
232
If the freight/insurance amount undergoes a change before “Let Export” is given
consequent to the change of vessel, corresponding changes would also need to me
made in the S/B with the approval of AC Exports. But if the change has taken place
after the “Let Export” order, approval of Additional/Deputy Commissioner would be
required. Non-intimation of such changes would amount to mis-declaration and
may attract penal action under the Customs Act, 1962.
7.31.
RECONSTRUCTION OF LOST DOCUMENTS
Duplicate print out of EDI S/B cannot be allowed to be generated if it is lost,
since extra copy of Shipping Bills are liable to be misused. However, a certificate can
be issued by the Customs stating that “Let Export” order has been passed in the
system to enable the goods to be accepted by the Shipping Line, for export.
Drawback will be sanctioned on the basis of the “Let Export” order already recorded
on the system.
7.32.
RE-PRINT OF SHIPPING BILLS
Similarly, re-prints can be allowed where there is a system failure, as a result
of which the print out (after the “Let Export” order) has not been generated or there is
a misprint. Permission of AC Exports would be necessary for the purpose. The
misprint copy shall be cancelled before such permission is granted.
7.33.
EXPORT OF GOODS UNDER CLAIM FOR DRAWBACK
Processing of drawback claims under the system will be applicable for all
exports except in respect of claims under Section 74 of the Customs Act and those
relating to EPZ/100% EOU. For the excluded categories, the export S/B will be filed
manually and processed by AC Drawback, as hitherto.
For export goods under claim for drawback, the exporters will file declaration in
Annexure B. The declaration in Annexure C would also be filed when the export
goods are presented at the CPT Export Shed (or at the CFS, if connectivity is
provided) for examination & “Let Export”. In addition they should file a declaration in
Appendix III.
233
The exporters have been, vide P. N. No. 201/98 dated 28.10.98, advised to
open their accounts with the Indian Bank, Harbour Branch, Chennai. This has been
done to enable direct credit of the drawback amount to their accounts, obviating the
need for issue of cheques. The exporters have to indicate these account numbers
in Annexure B. Shipment for exports under claim for drawback would not be
accepted in case the account number of the exporter in the Indian Bank is not
indicated in the declaration form.
The exporters should also give their account numbers, along with the details of
the bank through which the export proceeds are proposed to be realised.
The drawback claims are sanctioned subject to the provisions of the Customs
Act; the Customs and Central Excise Duties Drawback Rules, 1995 and conditions
prescribed against heading/sub-headings of the Drawback Schedule.
In order to sanction the drawback through the system, exporters should submit
declaration in Appendix III along with appropriate declaration, if any in Appendices
IV to XV. The details of the declarations submitted shall be mentioned in the
appropriate column of Annexure B.
The rates of drawback under some S. S. Nos. are dependent upon conditions
mentioned against them in the Drawback Schedule. To enable the EDI system to
process the claims correctly, exporters are advised to give the correct Sl. No., of
the relevant Appendix applicable to their case on the declaration as well as in the
column “Condition No” in the Table at Page No. 3 of Annexure B. The Sl. Nos. of
the relevant declarations not applicable for the exporters may be deleted.
If the relevant declarations are not filed along with the S/B, the system will not
process the drawback claims. The exporters are, therefore, advised to file the
correct declaration along with the S/B and properly fill the Table on Page 3 of
Annexure B.
Vide notification 39/97-Cus (NT) dated 10.09.97, against S. S. No. 87.55, 87.56,
87.57, 87.58, 87.59, 87.60, 87.61 and 87.62 different ceilings have been fixed,
though the ad valorem rates of drawback for different items against these are the
same. Therefore, exporters are advised to mention correct S. S. Nos. in Annexure
234
B. The drawback will be paid calculated on the basis of quantity in the unit
mentioned against each sub-serial of Annexure E.
The chart in Annexure F shows the Serial number of different Appendices to be
filed by the exporters for goods falling under respective S. S. Nos. of the Drawback
Schedule. The exporters are advised to ensure that correct the declarations in the
required Appendix is filed as indicated below: a.
Several specified sub-headings mentioned in the Drawback Schedule
are dependent on the condition that MODVAT facility has not been availed. In
order to claim drawback under such sub-headings, the exporters are required
to file a declaration in Appendix-IV. They should produce a certificate in
support from the Superintendent of Central Excise in charge of the factory of
production. In case a merchant exporter is exporting the goods, the certificate
of the supporting manufacturer would have to be produced.
b.
The drawback in respect of S. S. Nos. 28.26, 28.261, 29.15, 29.16,
30.01 and 30.02 is subject to the condition that Drugs and Pharmaceuticals
exported are other than those ineligible. The exporters availing drawback
under any of these S. S. Nos. should file a declaration in Appendix V.
c.
The drawback in respect of goods packed in OTS cans is Rs. 10 per Kg.
of the net weight of empty containers plus Central Excise duty actually paid on
the cans. The exporters availing drawback under these S. S. Nos. should file
declaration in Appendix IV along with the certificate from the Superintendent
of Central Excise that MODVAT facility had not been availed of on any of the
inputs. The should also produce documentary evidence towards payment of
Central Excise duty on the cans.
d.
The drawback rates under S. S. Nos. 30.10 and 30.11 are applicable for
1000 boxes of 14 tablets each. For claiming drawback under these S. S. Nos.,
exporters should give number of boxes of 14 tablets each in Annexure B. If
the number of tablets in a box is less or more 14, they should declare the
number of boxes proportionately so as to indicate number of boxes containing
14 tablets.
235
e. In respect of goods falling under S. S. Nos. 30.04, 30.05, 30.06, 30.07 and
30.14, declaration has to be filed in Appendix VII.
f.
In respect of goods falling under S. S. Nos. 30.03, declaration has to be
filed in Appendix VIII.
g.
In respect of goods falling under S. S. 48.03, 48.04, 48.05, 48.06, 48.07,
48.08, 48.09 and 95.01, declaration has to be filed in Appendix IX.
h.
Drawback for goods falling under S. S. Nos. 72.01, 72.03, 72.05, 72.07,
72.09, 72.11, 84.38, 87.13, 87.14, 87.15, 87.16, 87.17, 87.18, 87.19, 87.21,
87.22, 87.23, 87.24, 87.25, 87.26, 87.27, 87.29, 87.30, 87.31, 87.32, 87.33,
87.34, 87.35, 87.36, 87.37, 87.39, 87.40, 87.41, 87.43 and 87.44 is
admissible subject to the condition that only duty paid imported HR
Steel/Strip/Wide coils have been used in the manufacture of export product.
The exporter claiming drawback under these S. S. numbers are required to
file declaration in Appendix X.
i.
The drawback in respect of S. S. Nos. 73.01, 73.18, 73.20, 73.24,
84.01, 84.02, 84.03, 84.04, 84.05, 84.06, 84.061, 84.062, 84.49, 84.50, 84.60,
84.61 and 87.12 is admissible subject to the condition that duty paid imported
steel has been used in the manufacture of export product. A declaration to
this effect should be made on S/B and Invoice and a certificate from
Superintendent of Central Excise to this effect should be produced. The
exporters claiming drawback under these S. S. Nos. are required to file
declaration in Appendix XI.
j.
The drawback under S. S. Nos. 85.56 is subject to the condition that
imported colour Monitor Tubes have been used in the export goods and
documentary evidence in this regard is produced. The exporters exporting
goods under this S. S. Nos. are required to file declaration in Appendix XII.
k.
The drawback under S. S. No. 84.10, 84.11 and 84.12 is subject to the
condition that the order/contract and relevant shipping documents give clear
indication of FOB prices charged for pump and electric motor separately. If so,
drawback on motor is admissible @ 7% and @ 4.4% in respect of pump. The
exporters claiming drawback under the these S. S. Nos. are required to file
236
declaration in Appendix XIII. If the FOB prices of motor and pump are not
available separately, drawback @ 3% on total FOB value is admissible and
exporter is required to delete S. No. 2 of the Appendix in such a case. If
separate prices are available, S. No. 1 should be deleted and the value of
electric motor and pump written separately in Annexure B. Value of motor
shall be mentioned against S. S. No. 84.121 and that of pump against S. S.
No. 84.122.
l.
The exporters of leather articles are required to file Appendix XIV,
subject to the condition that the goods are manufactured out of indigenous
finished leather and there is no content of duty free imported leather.
m.
The Exporter of electric fans, if exporting regulators along with the fans
are required to separately enter S. S. No. of fans and S. S. No. of regulators
in Annexure B. Similarly, the exporters of bicycle/cycle rickshaw, if exporting
accessories also, should fill relevant S. S. Nos. for bicycle/cycle rickshaw
accessories separately.
n.
The rate of drawback for German silver Artware falling under S. S. No.
74.22 is dependent upon content of copper, zinc and nickel. The exporter of
this product is required to file this information in Annexure B, showing content
of copper against S. S. No. 74.221, content of zinc against S. S. No. 74.222
and of nickel against S. S. No. 74.223.
o.
The rate of the drawback for galvanised Iron Artware with brass falling
under S. S. No. 74.23 is dependent upon content of brass and iron. Exporter
of this product is required to file the information in the Annexure B showing
the content of brass against S. S. No. 74.231 and content of iron against S. S.
No. 74.232.
p.
The drawback rates under S. S. No. 73.31, 74.25, 75.02, 78.02 and
79.02 are at the rates applicable under the relevant S. S. Nos. in proportion to
the material content. The Annexure B in such cases shall be filled claiming
drawback under the relevant S. S. Nos. at the rates mentioned against them,
indicating quantities of the content in the export product of each of the
constituents.
237
After actual export of the goods, the drawback claims will be processed
through the system on first come first served basis. There is no need for filing
separate drawback claims. The status of S/B and sanction of drawback claim can
be ascertained from the Query Counter set up at the Centre. If any query has been
raised or deficiency noticed, the same will be shown on the terminal provided there.
The exporter or his authorised representative may obtain a printout of the
query/deficiency from the Centre, if he so desires. Exporters are advised to reply
such queries expeditiously and get the replies entered in the system. The claim will
come in queue of the system as soon the reply is entered.
Shipping Bills in respect of goods under claim for drawback against brand
rates would also be processed in the same manner, except that drawback would be
sanctioned only after the original brand rate letter is produced to AC Export and is
entered in the system. The Exporter should specify the S. S No. 98.01 for such
provisional claims in Annexure B.
All the claims sanctioned on a particular day will be enumerated in a
scroll and transferred to the Indian Bank through the system. The bank will credit the
drawback amount in the respective accounts of the exporters on the next day. Bank
will send a fortnightly statement to the exporters of such credits make in their
accounts.
The Steamer Agent will transfer the EGM electronically to the system, so
that the physical export of goods is confirmed. The system will process the claims
only on receipt of the EGM.
7.34.
EXPORT OF GOODS UNDER THE DEEC SCHEME
Only S/B pertaining to DEEC Books issued on or after 1.4.95 will be processed
in the system. This would cover DEEC Books issued under the following
notifications: i.
079/95 Cus. dated 31.3.95
ii.
080/95 Cus. dated 31.3.95
iii.
106/95 Cus. dated 02.6.95
238
iv.
v.
107/95 Cus. dated 02.6.95
148/95 Cus. dated 19.9.95
vi.
149/95 Cus. dated 19.9.95
vii.
030/97 Cus. dated 01.4.97
viii.
031/97 Cus. dated 01.4.97
All exporters intending to file S/B under the DEEC scheme including those under
the claim for drawback should first get their DEEC Books entered in the Centre by
producing the original DEEC Book. A print out of the particulars entered will be
given to the exporters for their confirmation. After the confirmation by the exporter,
by way of signing the printout along with the Identity Card No. of the CHA, the
DEEC Book should be presented to the Appraiser, DEEC Cell for verification and
registration in the system. The Registration No. of the DEEC Book would be
furnished to the exporter and should be mentioned in Annexure A or B. Thereafter,
it would not be necessary for the exporter to produce the original DEEC Book for
processing of export declarations.
For all exports under the DEEC scheme, the exporter should file the
declarations at Appendix II (in all cases) and Appendix III (where drawback is
claimed in addition to DEEC benefits). These declarations should be signed by the
exporters themselves and not by the CHA (or representative).
Appendix II requires declarations to be made regarding availment/nonavailment of MODVAT or regarding observance/non-observance of specified
procedures prescribed in the Central Excise Rules, 1944. The declaration should
be supported by certificates (AR-4 or any other evidence of non-availment of
MODVAT) issued by the jurisdictional Central Excise officer. The “Let Export” would
be allowed only after verification of all these certificates at the time of examination
of the goods. The fact of filing Appendix II or III should be mentioned in Annexure A
or B.
Appraiser Exports and AC Exports will process, on the screen all export
declarations for DEEC. After the declarations have been so processed and
239
accepted, the goods can be presented for examination along with the DEEC book
and “Let Export” as detailed in para 7.2 supra.
The requirements in regard to computerised processing of DEEC Shipping Bills
are as follows: i.
Where benefits under the both DEEC and the Drawback
Schemes are sought to be availed of, exporters should file both the
declarations in Appendices II and III.
ii.
The options set out in Appendices II and III should be read
carefully and whatever not applicable should be struck out.
iii.
Exporters availing of DEEC benefits in terms of Notifications No.
148/95 and 149/95 both dated 19.9.95 or 30/97 dated 1.4.97 should
subscribe to the declaration at S. No. 1A of Appendix II, if the export
goods have not been manufactured by availing of the procedure under
Rule-12 (1) (b) or 13(1)(b) of the Central Excise Rules, 1944.
iv.
Exporters possessing a DEEC Book in terms of Notification No.
149/95 dated 19.9.95 and desirous of availing of the benefit under
Notification No. 49/94-CE (NT) dated 22.9.94 should subscribe to be
declarations at S. No. 1(B) of Appendix II.
v.
Similarly, Exporters availing of benefits in terms of Notification
Nos. 79/95 or 80/95 both dated 31.3.95, 106/95 or 107/95 both dated
2.6.95 or 31/97 dated 1.4.97 shall subscribe to the declaration at S. No.
1 (A) or 1(C) of Appendix II, as the case may be.
vi.
Exporters who wish to avail DEEC benefits but do not propose to
claim any drawback need file only the declaration in Appendix II.
It is also clarified that those exporters who propose to fulfil export obligations
themselves have to sign declaration at S. No. 2A of Appendix II. However, if the
export obligations are being fulfilled by exports through a third party, the exporter is
required to strike out S. No. 2A and subscribe to S. No. 2B of Appendix II. In such a
case, the name of the DEEC licence holder as well as that of the exporter shall be
given and both have to sign the said declaration.
240
As regards the declaration in Appendix III, the options are set out in Sl. No. 4 &
5. Exporters are required to subscribe to the correct option and delete the other(s).
Exporters who are exporting goods under DEEC Scheme shall delete declaration at
Sl. No. 5A of Appendix III and shall subscribe to the Sl. No. applicable to them.
Those Exporters who possess a DEEC book under notification No. 79/95,
80/95, 30/97 or 31/97 and intend to claim the Central Excise portion of drawback
shall subscribe to declarations at Sl. No. 5B of Appendix III. Those exporters who
are exporting goods under DEEC but intend to avail at the brand rate of drawback
shall subscribe to the declaration at Sl. No. 5C of Appendix III. Such exporters are,
required to file their S/B in Annexure B. Exporters, who are having DEEC books
under notifications other than 79/95, 80/95, 30/97 and 31/97, are not entitled for All
Industry Rates of drawback.
It is clarified that:i.
While giving details relating to DEEC operations in the forms at
Annexure A/B, the exporters should indicate the Sl. No. of the goods
being exported in the column titled “ITEM S. NO. IN DEEC BOOK
PART E” OF Annexure A/B.
ii.
If inputs mentioned in DEEC Import book only have been used
in the manufacture of the goods under export, in column titled “ITEM
S.NO IN DEEC BOOK PART C” of Annexure A/B, the exporters are
required to give S. No. of inputs in Part -C of the DEEC Book. They
need not fill up column titled “DESCRIPTION OF RAW MATERIALS”.
iii.
If some inputs which are not in Part-C of the DEEC Book have
been used in the manufacture of the goods under export and the
exporter wants to declare such inputs, he shall give the description of
such inputs in column titled “DESCRIPTION OF RAW MATERIALS”
iv.
In the column “IND/IMP”, exporters are required to write “N”, if
the inputs used are indigenous and “M”, if the inputs used are
imported.
241
In column titled “Cess Schedule Sl No.” relevant Serial No. of
v.
the Schedule relating to Cess (at Annexure D) should be mentioned.
7.35.
EXPORT GENERAL MANIFEST
Arrangements are being made for all Steamer Agents to furnish the EGMs
giving details of S/Bs and Bills of Lading to the Customs electronically. In the
meantime, they should enter the EGM in the system through the Centre on
payment of fee @ Rs. 60 per EGM. After the entry of the EGM, a checklist will be
generated which has to be signed by Steamer Agent certifying the correctness of
data. They shall be liable for penal action, if incorrect or incomplete EGMs are
submitted. The Service Centre would be receiving the EGMs for data entry
between 9 AM and 11 AM and between 6 PM and 8PM.
Apart from submitting EGMs electronically, the Steamer Agent would continue
to file manual EGMs along with the duplicate copies of the S/Bs as per the present
practice. Since the disbursement of drawback to exporters is dependent on the
filing of EGMs by the Steamer Agent, they are advised to file the EGMs soon after
the vessel has departed. The manual EGMs would be entered in the register at the
Export
Department
and
the
Steamer
Agents
are
advised
to
obtain
acknowledgements indicating the date and time at which the EGMs were received.
Journey of export documents
1.
The Exporters/CHA has to submit duly filled-in Annexure-A in case of Duty
Free Bills/Cess Bills/D.E.E.C.Bills and Annexure-B in case of Duty Drawback
Bills/Drawback cum D.E.E.C Bills along with one copy of Invoice and two copies
of Form S.D.F.
2.
The Service Centre staff enters the data into the system and generates check
list to be verified by the Exporter/CHA for correctness on verification if the data
found to be correctly recorded. The Exporter/CHA will sign the check list and
return it to the Service Centre, signaling final submission. Then the Service
Centre will generate the S/B Number, which will be recorded manually on the
right top of the check list and returned to the Exporter/CHA; thus completing the
registration of document. The Service Centre will also generate three copies of
242
TR-6 Challans for payment of Cess wherever the Cess element is involved.
3.
The following categories of S/Bs will be put to Asst.Commissioner queue for
clearance:
-
Duty Free S/Bs - F.O.B. value over Rs.10 lakhs
-
D.E.E.C. S/Bs - F.O.B. value over Rs.1 lakh
-
Drawback S/Bs - Drawback over Rs.1 lakh
-
Free Trade Samples - F.O.B. value over Rs.25000.
Once cleared from A.C., these Bills will be put in goods
registration for Examination queue.
4.
All other S/Bs straightaway put in examination goods registration queue with no
prior assessment of documents.
5.
The Exporter/CHA has to present goods for examination within 15 days from the
date of document registration of Service Centre.
6.
The Exporter/CHA has to submit duly filled Annexure-C to the Systems
Examination Officer who will register the entry of goods in the system.
7.
At this stage, the system randomly picks up certain S/Bs for examination, and
the rest of the S/Bs will be subjected to inspection of description through marks
and numbers.
8.
With the directions generated by the system, S/B will be moved to Appraising
Officer‟s screen. The A.O. will verify the correctness of data available in the
system vis-a-vas physical documents.
9.
The A.O. will mark the S/B to various examiners working under his control with
necessary directions.
10. The Examiners will carry out the examination and enter the examination report
in the system.
11. The S/B will move back to A.O.‟s screen for Let Export Order (L.E.O.). In case
243
of Cess S/Bs and grants L.E.O. the A.O. will verify the examination report, duty
payment details.
12. After L.E.O. is given by the Appraising Officer, the system will generate two
copies of S/B. The A.O. will obtain the signatures of Examiner and
Exporter/CHA. in the designated places besides signing himself on the
documents.
13. The first copy (Customs Copy) along with all other original documents will be
retained by A.O. and second (Exporter Copy) will be given back to the Exporter
along with one copy of the Form S.D.F. for banking purpose.
14. The S/B will then move electronically to Preventive Section where Preventive
Officers will supervise the stuffing of cargo into containers and stuffing report will
be recorded in the system by the P.O.
15. The container will be loaded into the vessel by obtaining goods received stamp
from the Chief Officer/Master of vessel exporters on the copy of (hard copy)
Shipping Bill.
16. On verification of the goods received stamp, the P.O. will record sailing report in
the system.
17. The S/B will then move into Shipping Agents Queue for filing of E.G.M.
18. After E.G.M. is recorded in the system, the DBK bills are put in DBK Processing
Queue. D.E.E.C. bills will be put in D.E.E.C. Superintendent‟s Queue for log-in
details and other S/Bs will form part of History Database.
19. DBK and D.E.E.C. S/Bs after completing the respective formalities will join the
other S/Bs in the History Database; thus completing the cycle of Shipping
document.
244
UNDER CLAIM FOR DRAWBACK
EDI System will process Drawback Claims for all exports, except in respect of
Claims u/s 74 of Customs Act, 1962, exports made in the name of third party
and those relating to EPZ/100% EOU.
Every exporter should open their account with the Indian Bank, Harbour
Branch, Chennai-1, so as to enable Chennai Customs to directly credit their
Drawback amount into their accounts, obviating the need for physical issue of
cheques. No shipment will be allowed without proper account number of the
exporter in the Indian Bank. The account numbers should be given along with
the details of the bank through the export proceeds are proposed to be
realised.
For exports under claim of DBK the exporters will file declaration in AnnexureB. The declaration in Annexure-C will also be filed when the export goods are
presented at the Shed for examination. In addition, Appendix-III should be filed
as a declaration.
The Exports/CHA are hereby cautioned to give all relevant declarations.
Otherwise, the system will not process the Drawback claims.
There is no need for filing separate drawback claims. After actual export of the
goods, the drawback claims will be processed through the system on Fist
Come First Served basis.
If any query has been raised or any deficiency noticed by the A.O.(DBK) or by
the A.C.(DBK), the same will be printed at the EDI Service Center. The
printout can be obtained and replied quickly through the Service Center.
All the claims sanctioned on a particular day will be enumerated in a scroll and
transferred to the Indian Bank through the system. The bank will credit the
drawback amount in the respective accounts of the exporters on the next day.
7.36. Computerised processing of DEPB, 100% EOU and EPCG Shipping Bills
under the Indian Customs EDI Systems (Exports)
245
1
The procedure for processing of Shipping Bills will be same as above
except following changes:
2
All the Exporters exporting goods under DEPB, 100% EOU and EPCG
schemes will be required to get their Importer Exporters Code Number
registered in Customs EDI System (if not already registered) before filing
Shipping Bills.The Exporters will file details in the revised form at of
Annexure A after incorporating the changes indicated in Annex I.It may be
noticed that for EPCG (Green) Shipping Bills i.e. with Drawback, the details
would be filed in the revised format of Annexure B after incorporating
changes as indicated in Annexure II to this Public Notice.In case of DEPB
Shipping Bills Exporters / CHAs are also required to file details as per
declaration as per “Annexure F” in the format annexed to this Public Notice
at the time of goods arrival, apart from the particulars in Annexure C to
above Public Notice.For 100% EOU goods the examination particulars
would be filed as per Annexure C1 to this Public Notice.
3
DEPB
While filing information as per revised format of Annexure A, Exporters are
required to ensure that correct Group Code No. of the goods being exported
and the item No. of relevant Group is clearly mentioned in column 20 (itemwise details).For item No.49 of Group Code No. 83 (Electronics) value cap
has been fixed at Rs.100/- for video cassette and Rs.35/- for audio
cassette, the Exporters exporting video cassettes are required to mention
Sl. No.49(A) and those exporting audio cassettes are required to mention
Sl. No.49 (B).Wherever the item No. is alpha-numeric like 70(i), 70(ii), 70(iii)
etc. in Group Code No. 61 (Engineering) or 38 (A), 38(B), 38(C), 38(D) in
group code No.62 (Chemicals), the Exporters / CHAs are advised to fill Item
No. in the same manner as given in the Public Notices issued by D.G.F.T..
4
DEPB Credit in respect of item No.37(A), 37(B), 37(C), 37A(A), 37A(B),
37A(C) and 37A(D) of Group Code No.62 (Chemicals) are 75% of credit
246
rate for the relevant bulk drug.For proper calculation of DEPB rate,
Exporters/CHAs are advised to claim export under Sl.No.37 (A) if they are
exporting injections and thereafter mention Sl.No. of Group Code 62 of the
bulk drug of which such injections have been made.The system will
calculate 75% of the DEPB rate of such bulk drugs formulations of which
are being exported.For example, if an Exportersis exporting injections of
aminophylline, in column 19 of Annexure A they should mention Sl.No. 37
(A) and thereafter Sl.No. 8 so the system calculates 75% of 18% that is
13.5 % credit in respect of injections of aminophylline.However, if the
formulations being exported are made of two or more bulk drugs, the trade
is informed that manual Shipping Bills have to be filed as the system cannot
process such Shipping Bills.
5
As already informed to the trade, filing of GR-I will not be required in cases
where exports are being handled through Indian Custom EDI System
(Exports). Therefore w.e.f. 05.01.2000 the Exporters exporting goods under
DEPB Scheme will not be required to file GR-I Form but only a declaration
in form S.D.F as is being done in drawback cases and white Shipping
Bills.The format of S.D.F. has already been circulated vide Public Notice
No.34/99.For the purposes of negotiating the export documents through
authorised dealers, the Exporters will be given an additional copy of
Shipping Bill marked as “Exchange Control Copy” duly authenticated by
Appraiser of Customs.However, they have to submit certificates from their
Bank(s) as per format already circulated to the effect that they are
maintaining account in the said Bank and indicate the Branch Code No. of
the Bank as well as their Account No. in the Bank.The details about their
Bankers will be fed in Customs Computer before processing of the Shipping
Bills.
6
All the DEPB Shipping Bills having FOB value less than Rs.5 lakhs and / or
DEPB rates less than 20% will be assessed by Appraiser (DEPB
Cell).However, the Shipping Bills having FOB value more than Rs.5 lakhs
and/ or credit rate 20% or more will be assessed by A.C./D.C (Export).Any
247
query at the time of assessing by Appraiser (DEPB Cell) or A.C.
/D.C.(Export) may be obtained from the Service Centreand reply to the
query has to be furnished through Service Centre.
7
If the Group Code No., Item No. and FOB value declared is accepted by the
Appraiser (DEPB Cell) or Assistant / Deputy Commissioner (Export), goods
may be brought and entered in the system.The examination report will be
fed by the examining officer and “Let Export” order will be given by
Appraiser in the EDI System.Five copies of Shipping Bill will be printed for
the purposes mentioned against each as under:
i.
ii.
iii.
Customs Copy:
Exporters‟s Copy:
For
record
Customs
For
record
of
Exporters
from
E.P. Copy
of
office
of
DGFT
For
use
in
the
import cell of this
iv.
DEPB Copy
customs station for
registration
of
licence.
v.
Exchange
Copy:
8
Control
For negotiating the
export
documents
in bank
There is a provision for changing the Group Code No./Item No./Value for
DEPB credit purposes and such changes will be reflected in the print out of
the Shipping Bill.Such changes may be done by Appraiser (DEPB Cell),
A.C./D.C. (Export) as well as by Appraiser (Exam).The credit will be allowed
by the DGFT at the rate / value (for credit purposes only) as approved by
248
Customs.The EP Copy of the shipping Bill shall be used by the Exporters to
obtain DEPB licence from DGFT
9
In case, the Exporters for credit purposes, accepts the lower value as
determined by Customs, such lower value will be entered by Appraiser
(DEPB Cell), A.C./D.C. (Exports) or by Appraiser (Examination) for each
item(s).Printout of Shipping Bills at item level will indicate for FOB value as
well value for DEPB credit purposes.Exporters are required to apply for the
DEPB Licence at the FOB value accepted by Customs and not the value
declared by them.However, as DEPB is issued on the basis of exchange
rate applicable on the date of realization, Exporters are advised to apply for
DEPB Licence at the value accepted by Customs at the time of export
multiplied by exchange rate as per Bank realisation certificate
10
In case the Exporters does not accept the value determined by the
Customs, the exports will be allowed provisionally after taking samples for
market enquiry.The words“NOT VALID FOR DEPB” will be printed on all the
copies of the Shipping Bill and the Exporters will be not be eligible for DEPB
licence against provisionally assessed Shipping Bills.In such cases, EP
Copy of Shipping bill will not be printed and only 4 copies will be printed(6
copies in case of ICDs).However, market enquiries about value will be
conducted in such cases and either after issue of the Show Cause Notice
the market value will be determined or may be accepted by the Exporters
on his own.In such cases where samples are drawn subject to market
enquiry the copy of the Shipping Bill for claiming DEPB will be generated
after determination of value on the basis of market enquiry and handed over
to the Exporters duly signed by Appraiser of Customs.In such cases
wherever market value has been found to be less than twice the credit
claimed, the market value will be mentioned in the EP Copy of Shipping Bill
as under:“Market value of the goods is Rs……………………and credit not to exceed
249
50% of the market value”.
Samples may also be drawn for other purposes such as Chemical test,
DEPB entitlement etc.The procedure of Provisional Assessment shall be
applicable mutatis and mutandis to above cases as well and the cases will
be finalised after necessary reports etc. are received and unprinted copy of
Shipping Bill meant for DEPB licence shall be released thereafter for
printing.
11
Registration of DEPB Licences:The DEPB Licence in respect of exports
made from this Customs Station will be required to be registered at the
same station.Before registration, the concerned officer will verify the
Shipping Bill(s) in the Licence from the computer to ensure that exports
have been effected and value mentioned is as determined by Customs at
the time of export.In cases of Shipping Bills assessed provisionally, the
verification will not be possible because Shipping Bill will not be in the
verification queue.The Exporters are advised to obtain licences for the items
exported under DEPB Scheme and not for non-DEPB items.If the lower
value for credit purposes has been accepted at the time of export, the
licences shall be obtained only for such lower value and not for FOB value
declared in Shipping Bill or as per Bank realisation certificate.Similarly in
cases where market value of the goods is less than twice credit availed, the
licence shall be obtained for 50% of the present market value of the
goods.The computer at the time of registration of licence will calculate
admissible credit on the basis of exchange rate on the date of realisation of
export proceeds (as per bank realisation certificate)for DEPB items only and
at Customs approved value at the time of export.If the amount of licence is
more than the amount of credit calculated by the system, it will not be
possible to register a licence and reference will be made to DGFT for
correction of amount of credit.If the amount of credit as per Customs
Computer matches with the credit as per DEPB Licence, Computer will
generate printout regarding verification of the exports giving details like
Shipping Bill No., Date, rate of credit, FOB value as approved by Customs
250
and amount of credit etc.DEPB licence will be registered on the basis of
printout of verification report duly signed by A.C. /D.C. (Export).If a DEPB
Licence is having Shipping Bills exported from other ports in the same city,
the Exporters can get the licence registered at any of the ports from where
he intends to import the goods in the city after verification about exports
from other ports from where exports were effected.
12
100%EOU SCHEME.The Exporters can get the export goods examined by
Central Excise / Customs Officer at the factory even prior to filling of
Shipping Bill.He shall obtain the Examination report in the form annexed as
Annexure „C-1‟ to this Public Notice duly signed and stamped by the
Examining Officer and Supervising Officer at the factory.However, where
the goods are removed from the factory under AR-4, Annexure „C-1‟ will not
be insisted upon for a period of one month from the date of issue of this
Public Notice.There after details in Annexure „C-1‟ would be necessary.The
export invoice shall also be signed and stamped by both the officers at the
factory.Thereafter the goods shall be brought to the concerned Customs
Warehouse for the purpose of clearance and subsequent “Let Export”.The
Exporters /CHA shall present the goods for registration along with
Examination Report in Annexure „C-1‟ (copy enclosed) / AR-4 Export
Invoice duly signed by the Examining Officer and Supervising Officer at the
factory, check list, declaration in modified form Annexure „A‟, Annexure „C‟
and other documents such as document of transportation, AR-4 form etc. to
the Examiner in the concerned shed.After registration of goods, the
shipping bill will marked to an Examiner for verification of documents and
seal.If seal is found intact the Shipping Bill will be recommended for LEO
which will be given by the Shed Appraiser.However if seal is not found
intact, the goods will be marked for examination and LEO will be given if the
goods are found in order.
13
EPCG SCHEME
All the Exporters intending to file Shipping bills under the EPCG scheme
251
should first get their EPCG licence registered with the Export Section. For
registration of EPCG licence, the Exporters/ CHA shall produce the Xerox
copy of EPCG licence to the Service Centre for data entry.A printout of the
relevant particulars entered will be given to the Exporters/ CHA for his
confirmation.After verifying the correctness of the particulars entered, the
said printout will be signed by the Exporters.Thereafter, the original EPCG
licence along with the attested copy of the licence and the signed printout of
the particulars shall be presented to the Appraiser (EPCG Cell).The
Appraiser (EPCG Cell) would verify the particulars entered in the computer
with original licence and register the same in the EDI system.The
registration number of the EPCG licence would be furnished to the
Exporters / CHA, who shall note the same carefully for future reference.The
said registration number would need to be mentioned against respective
item on the modified declaration form in Annexure “A” or “B” filed , for data
entry of the Shipping Bill, at the time ofexport of goods.All the EPCG
Shipping Bills would be processed on screen by the Appraiser (EPCG Cell)
and the A.C./D.C. (Export).After processing of the EPCG Shipping Bill by
Appraiser EPCG Cell and AC / DC Export, the goods can be presented at
the Customs Warehouse for registration, examination and “Let Export” as is
the case with other export goods.After filing of EGM / Generation of the
Drawback scroll,the shipping bill will be put to Appraiser queue for logging/
printing of ledger.After logging / printing of ledger, the EPCG bill will be
moved to History tables.
252
PROCEDURE FOR DEPB,100%EOU AND EPCG SHIPPING BILLS
The procedure will be similar to the one meant for white/drawback
shipping bills
The above mentioned procedure differs for DEPB, 100% EOU and
EPCG shipping bills only in the following manner:
All the exporters under these schemes shall register their IECodes with
EDI. G.R.1 is waived and Form S.D.F (Self Declaration Form) will be
required to be filed along with every shipping bill.
All exporters will file details in the form of Annexure-I.
In case of DEPB shipping bills, exporters are required to file the
declaration in the form of Annexure-III to P.N.17/2000 at the time of
goods arrival.
For EPCG (Green) shipping bills, i.e. shipping bills with drawback,
details in the form of Annexure-IIto P.N.17/2000 shall be filed
For 100% EOU Goods examination particulars shall be filed in form of
Annexure-IV to P.N.17/2000.
For DEPB shipping bills exporters are required to ensure that correct
group code number is mentioned for each item.
For details, please read the P.N.17/2000. All the DEPB shipping bills
having FOB value less than rupees five lakhs and/or DEPB rates less
than 20% will be assessed by the Appraiser (DEPB).
All other DEPB shipping bills will be assessed by A.C./D.C.
(Exports/DEPB/EDI).
The DEPB licence in respect of exports made from this Customs
station will be required to be registered at the same section. The
Appraiser in charge of DEPB Cell will verify the shipping bills in the
licence from the computer, in the manner stated in the Public Notice.
253
For 100% EOU Scheme, the exporters can get the export goods
examined by Central Excise or Customs officials at the factory even
prior to filing the shipping bill. T
The Examination Report shall be made available in the form AnnexureIV duly signed and stamped by the Examining officer and the
supervising officer at the factory.
For details, refer Public Notice No.17/2000. All the exporters intending
to file shipping bills under the EPCG Scheme should first get their
EPCG licence registered with the export section.
This registration is similar to the DEEC registration.This Registration
No.is necessary to be mentioned against the respective item in
Annexure-I/II filed for data entry of such shipping bills.
All the EPCG shipping bills would be processed on screen by the
Appraiser (EPCG Cell) and also by the A.C./D.C.(Exports).
After filing of Export General Manifest (EGM) the shipping bill be put to
appraiser queue for logging/printing of ledger.
DECRLARATION FORM FOR EXPORT OF GOODS
UNDER DEPB, 100% EOU AND EPCG –WHITE
To be filled in by the Service Center
Date of Presentation:
Job No:
254
Shipping Bill No.:
Date :
Signature:
Date :
To be filled in by Exporters / CHA
1. Type of Shipping Bill:
[B]
DEPB
[U]
100% EOU
[C]
EPCG – WHITE
2. CHA Licence No. :
3. (a) IE Code No.:
(b) Name & Address of Exporter :
(c) Export Type : (i) : [P] Private / [G] Government
(ii): [R] Merchant / [F] Manufacturer
4. State of Origin of Export goods:
(Tamil Nadu / Karnataka / Kerala etc.)
5. Consignee Name & Address:
255
6. Consignee Country :
7. Port of Destination :
8. Final Destination Country:
9. (a) Name & Address of the Bank through which export proceeds are to be
realised:
(b) Account No. :
(c) Authorised Dealer Code:
Invoice Details
10. Invoice Number:
Date:
11. (a) Whether Consignee and Buyer are same :
(Yes / No)
(b) If No, Buyer‟s Name and address:
12. Currency of Invoice:
13. Export Contract No. :
14. Nature of Payment :
[LC] Letter of Credit
[DA] Delivery against acceptance
[DP] Direct Payment
[AP] Advance Payment
15. Period of Payment as per the contract (No. of. Days):
16.
(a) Nature of Contranct : [1] FOB [2] CIF [3] CF [4] CI
(b) Whether unit price includes [F] Freight
[I] Insurance
256
[B] Freight & Insurance
[N] None
Currency
Amount
(c)
Rate
Discount
Commission (FAC or LAC)
Other Deductions
Packing & Misc. Charges
Freight
Insurance
(d)
Name & Address of the person to whom the commission is paid / payable :
17. Item – wise details
ITC
(HS)
Generic & Item Qty
Description
A/c
Unit
DEPB Particulars
Unit
Price Group
Code
Item Sl. No in Quantity in terms of the accounti
the Group
in the value specified in the
Schedule
(2)
(3)
(4)
(5)
(6)
(7) ( i)
(7) (ii)
7 (iii)
Only where value cap is based on quantity.
18. S.No. 20 Quota related details should continue to be filled in as per the table
below
257
S.No.
Invoice
Item
No. Quota
No.
of
the Certificate No. Date
Invoice
Expiry
Qty
Name of the
agency
Export
issuing
Licence No.
Certificate
/Licence
DECLARATION
I/We Declare that the particulars given above are true and correct.
I/We enclose the copies of the following documents: (To be submitted with the export goods in the Export Shed)
i.
ii.
iii.
iv.
v.
vi.
SDF form
DEEC Declaration
Invoice
Quota/Inspection etc. Certificate
Packing List with package wise contents
Others (Specify)
Name of Exporter:
Designation:
258
Signature:
Name of CHA:
Designation:
ID Card No:
Signature:
Dated:
Notes:
1.
All entries should be made in capital letters, typed or neatly hand written.
2.
Photocopy of invoice has to be attached with the declaration from for Data entry.
3.
All entries should be completed in all respects. Otherwise, it may be rejected.
ANNEXURE- B
DECRLARATION FORM FOR EXPORT OF GOODS
UNDER EPCG – GREEN (WITH DRAWBACK)
To be filled in by the Service Center
Date of Presentation:
Job No:
Shipping Bill No.:
Date :
259
Signature:
Date :
To be filled in by Exporters / CHA
1.
Type of Shipping Bill:
2.
CHA Licence No. :
3.
(a) IE Code No.:
[I]
EPCG-GREEN (WITH DRAWBACK)
(b) Name & Address of Exporter :
(c) Exporter Type :
(i) : [P] Private / [G] Government
(ii): [R] Merchant / [F] Manufacturer
4.
5.
Exporter‟s Account No. in the Indian Bank :
(a) Type of Export House (if applicable):
[EH] Export House
[TH] Trading House
[SH] Star Trading House
[SS] Super Star Trading House
260
(b) Certificate No.:
6.
Valid upto:
State of Origin of Export goods:
(Tamil Nadu / Karnataka / Kerala etc.)
7.
Consignee Name & Address:
8.
Consignee Country :
9.
Port of Destination :
10.
Final Destination Country:
11.
(a) Name & Address of the Bank through which
export proceeds are to be realised:
(b) Account No. :
(c) Authorised Dealer Code:
Invoice Details
12.
Invoice Number:
Date:
261
13.
(a) Whether Consignee and Buyer are same :
(Yes / No)
(b) If No, Buyer‟s Name and address:
14.
Currency of Invoice:
15.
Export Contract No. :
16.
Nature of Payment :
[LC] Letter of Credit
[DA] Delivery against acceptance
[DP] Direct Payment
[AP] Advance Payment
17.
Period of Payment as per the contract (No. of. Days):
18.
(a) Nature of Contract : [1] FOB
(b)
Whether
unit
[2] CIF
price
[3] CF
includes
[4] CI
[F] Freight
[I] Insurance
[B] Freight & Insurance
(c)
[N] None
262
Rate
Currency
Amount
Discount
Commission (FAC or LAC)
Other Deductions
Packing & Misc. Charges
Freight
Insurance
(d)
Name & Address of the person to whom
the commission is paid / payable :
Item – wise details
19.
Generic &
S) Item
Qty
Description
(3)
(4)
A/C
EPCG
Unit
Duty Drawback Details
Unit Price
(5)
Regn.No. &
Date
(6)
S.S.No.
Cond.No.in Quantity A/C
of P.N.
Appendix
for DBK
7(v)
7(vi)
7(i) 7(ii) 7(iii) 7(iv)
Unit
DBK
DBK
Rate
Rate
Claimed Claimed
7(vii)
(8)
.
20. Quota Related Details:
Sl.
Invoice
Item No. Quota
Expiry
No.
of
Date
the Certificate
Qty
Name
agency
of
the
issuing
263
No.
Invoice
No./
Export
Certificate
Licence No.
/
Licence
DECLARATION
I/We
declare
I/We
that
enclose
the
the
particulars
copies
given
of
the
above
are
following
true
and
documents:
(To be submitted with the export goods in the Export Shed)
i.
SDF
ii.
DBK Declaration
iii.
Invoice
iv.
Quota / Inspection etc. Certificate
v.
Packing List with package-wise contents
vi.
Others (Specify)
Name of Exporter:
Designation:
Signature:
Name of CHA:
Designation:
ID Card No:
Signature:
Dated:
Notes:
1.
correct
All entries should be made in capital letters, typed or neatly hand written.
-
264
2.
Photocopy of invoice has to be attached with the declaration from for Data entry.
3.
All entries should be completed in all respects. Otherwise, it may be rejected.
ANNEXURE-C
DEPB DECLARATION
Shipping Bill No. and Date ____________________________
I/We M/s. ______________________________________ (Name of the exporter)
do hereby declare as follows:
1.
That the quality and specification of the goods as stated in this Shipping Bill
are in accordance with the terms of the exports contract entered into with the
buyer/consignee in pursuance of which the goods are being exported.
2.
That I/We are not claiming benefit under “Engineering Products Export
(Replenishment of Iron and Steel Intermediates) Scheme” notified vide Ministry of
Commerce
Notification
No.539RE/92-97
dated
01.03.1995
3. That goods are being exported under DEPB Scheme as per para 7.25 of Export
& Import Policy, 1997-2002
4. That I/We shall not claim any benefit of an advance licence under DEEC Scheme
in respect of exports made against this Shipping Bill.
5. That I/We shall not claim any duty drawback in respect of goods exported
against this Shipping Bill.
6. That I/We shall not claim conversion of this Shipping Bill into duty drawback
Shipping Bill and/or DEEC Shipping Bill.
7. That I/We shall not claim credit under Rule 57A of Central Excise Rules, 1944
in respect of additional duty of Customs debited from DEPB credit.
8. That the goods are not manufactured and/or exported by unit licenced as
265
100% export oriented unit in terms of Import and Export Policy in force.
9. That the goods are not manufactured and/or exported by unit situated in any
free trade zone/export processing zone or any such zone.
10. That the goods are not manufactured partly or wholly in bond under Section
65 of the Customs Act, 1962.
11. That the present market value of the goods under export is as follows: Sl.No. Item No.in Invoice Present Market Value (in Indian Rupees)
12. That the benefit under DEPB Scheme in respect of goods being exported
under this Shipping Bill does not exceed 50% of the present market value of the
goods being exported
13. That I/We undertake to repatriate the export proceeds within the period
mentioned in SDF declaration and submit bank realisation certificate in the office
of DGFT while obtaining transferable licence. If a non transferable licence is
obtained before realization of export proceeds, I/We undertake to submit bank
realisation certificate at the port of registration of licence within 6 months from the
date of export or will furnish extension of time from Reserve Bank of India and
submit bank realisation certificate within such extended period or will pay back
amount equal to the DEPB credit against this Shipping Bill.
14. * I/We are exporting products mentioned at Sl.No.2 of product group “Fish
and fish products” and declare that the preservatives as prescribed in standard
input-output norms relating to fish and marine products have been used in the
export products.
15. * I/We are exporting products mentioned at Sl.No.3 of product group “Fish
and fish products” and declare that the export product have been obtained from
aqua culture sources.
[ * Strike out if not applicable ]
Name and Signature of the Exporter
266
Date:
Place:
ANNEXURE- D
OFFICE OF THE SUPERINTENDANT OF CENTRAL EXCISE
RANGE__________________________ DIVISION ________________________
COMMISSIONERATE _________________________________________________
C.No._______ Date _______ Shipping Bill No.*________ Date _______
7.37. EXAMINATION
REPORT
FOR
FACTORY
SEALED
CONTAINERS OF UNITS WORKING UNDER 100% EOU SCHEME
1. Name of the EOU
:
PACKAGES
/
267
2. IEC No. (of the EOU)
3. Factory Address
:
:
4. Date of Examination
:
5. Name & Designation of the
Examining Officer –
:
Inspector/EO/PO
6. Name & Designation of the
Supervising Officer –
:
Appraiser / Superintendent
7. (a) Name of Commissionerate/
Range
(b) Location Code **
:
:
8. Particulars of Export Invoice
268
(a) Export Invoice No.
:
(b) Total No.of Packages
:
(c) Name and Address of the
Consignee abroad
:
9. (a) Is the description of the
goods, the quantity and
their value as per
:
Yes / No
particulars furnished
in the export invoice?
(b) Whether sample is drawn
for being forwarded to :
Yes / No
Port of export?
10. Central Excise / Customs Seal Nos.
(a) For Non-Containerised Cargo
269
No. of Packages
:
Seal Nos.
(b) For Containerised Cargo
Container Number
Signature of
Exporter
Signature of
Size
Seal Nos.
Signature of
Examining Officer Supervising Officer
Name_______________ Name ______________ Name ______________
Designation _______ Designation _______ Designation _______
Note: 1.
Invoice(s) and any other document accompanying
this document should be attested by the officer
supervising the examination.
2.
* To be filled in by the exporter before filing
270
of this document at the time of “Goods
Registration” in the export shed.
3.
** Revised 6 digit code as assigned by the Directorate of S&I, XXYYZZ
XX Commissionerate
YY Division
ZZ Range
7.38. Export Goods to be taken back to town from Docks
( 1 ) It is notified for the information of the Exporters, Custom House Agents
and others concerned that henceforth for taking the export cargo (other than
perishable, damaged goods and goods under penal action) back into town, from the
Docks, the following procedure shall be followed.
An application for taking the Export cargo back to town, will be presented in
the Export Department, together with the relevant duplicate copy of the Shipping Bill.
After scrutiny, it will be endorsed to the concerned Shed Appraiser, for examination
of the goods and for his no objection.
The percentage of goods to be examined will normally be 5% unless
otherwise specified by Assistant Commissioner of Customs/Exports.
“In case of application for taking factory stuffed container back to town, A.
C./Export will normally order the container to be taken back to town after endorsing
“subject to checking the seal intact” unless other wise specified. If the seals are
found to be broken or tampered with in the Docks, the Shipping Bill will be returned
back to the Export Department and a suitable examination order will be given.”
271
The concerned Shed Appraiser in Docks will examine the cargo by exercising
the usual precautions and checks and if the goods confirm to the declared
description in the Shipping Bill, he will allow the same to be taken back to town under
Preventive supervision. The Preventive Officer will endorse the duplicate Shipping
Bill to that effect and return the file expeditiously to the Export Department for further
action.
In case, where any discrepancy is noticed by the Shed Appraisers, such
Shipping Bill will be returned to the Assistant Commissioner of Customs, Export
Department through the Assistant Commissioner of Customs, Docks with
appropriate remarks.
The status quo regarding the removal of damaged and perishable goods back
into town will, however, be maintained.
This supersedes the earlier Public Notice Nos. 150 dt.7.8.82 and No. 99
dt.17.8.98.
[Public Notice no.124 dated 17.8.98 issued by Commissioner of Customs (EP)
in F. No. S/16-Misc-457/98 Exp.]
(2)
Attention of all officers and staff is invited to the fact that henceforth in
all cases of requests of „back to town‟ of Export shipment after the same have been
carted into the docks, but for some reasons are not to be Exported, the full facts and
circumstances of the case have to be scrutinised by the competent authority in terms
of value of shipment before speaking order is passed in the matter in each case.
All other instructions in this regard will remain same as per Public Notice No.
124 dated 17.08.1998 issued by this Custom House.
[ Standing Order No. 7477 issued by Commissioner of Customs (EP) in F. No.
S/6B-9616/99 EXP ]
7.39. TRANSHIPMENT OF EXPORT CARGO FROM GATEWAY PORTS LIKE
CHENNAI & JNPT
The Export Promotion Board has examined the request of the trade that
transhipment of containers of export cargo may be allowed at gateway ports like
272
Chennai and JNPT, whereby goods which are customs cleared for shipment in small
ports would be transhipped by coastal vessels to the gateway ports from where they
would be sent on foreign voyage by foreign-going vessels. Similarly, on return
journey, the transhipment of imported cargo may be allowed at, say, JNPT or
Chennai so that the imported cargo containers can be taken to other smaller ports by
coastal vessels for final Customs clearance of those goods at the said smaller ports.
2.
The issue has been examined in the Board. On the import side, the imported
goods can be allowed for transhipment under Goods Imported (Conditions of
Transhipment) Regulations, 1995, whereby transhipment is allowed if the importer or
the agent makes an application to the proper officer seeking permission for
transhipment of the imported goods and the imported goods are manifested for
transhipment to the said Customs port. The transhipment of imported goods at these
ports may therefore be allowed liberally.
3.
For export goods, the shipping bills may be passed at the port of export and
export be allowed, subject to the condition of execution of bond as provided under
Regulation 4 of Goods Imported (Conditions of Transhipment) Regulation, 1995 and
the export goods are manifested for the final destination through the transhipment
port (hub port) like say “To Amsterdam through Chennai”.
4.
The issue of payment of drawback has also been examined. As per the
Drawback Rules the drawback is to be paid when the shipping bills are passed and
goods are loaded in ICD/CFS or port. Therefore, the drawback may be paid to the
exporters as soon as the shipping bills are passed and goods are shipped at the
originating port subject to the condition that the necessary bond has been executed
by the Steamer Agent to bring back and submit the proof for export to the Custom
House within 90 days. For endorsement and release of AR 4s the procedure
prescribed by Circular No. 354/70/97-CX-6, dated 13.11.1997 may be followed. The
submission of proof of export by the steamer agents must be strictly monitored.
[ Board‘s Circular No. 31/99-Cus. Dt.27.5.1999 issued vide F. No. 450/54/99Cus. IV ]
7.40.
Based on the above guidelines, all the Custom Houses have
issued Public Notices / Standing Orders on the subject. The two Public Notices
issued by the Mumbai Custom House in this regard are reproduced below-
273
( 1 ) It is notified for information of all steamers Agents, CHAs, Exporters and all
other concerned that to facilitate the movement of export cargo emanating from one
port to be shipped from another Gateway Port, the following procedure is prescribed.
The exporter/CHA will file Shipping Bills in sixtuplicate i.e. original, duplicate,
triplicate, two transference copies and one E. P. copy. In addition to the usual
information given in the Shipping Bill, the exporter / CHA will also mention the port of
export on the Shipping Bill along with serial number of the container. Each copy of
shipping bill will be endorsed that goods are to be transhipped through Gateway Port
other than Mumbai.
7.41. Further Procedure:
The shipping bill shall be processed, the cargo stuffed and the containers
sealed by the Customs Officers as per existing procedure.
The Appraising Officer/Examining Officer will give “Let Export” order on the
duplicate copy of the shipping bill as also on the transference copies. The E. P. copy
will be suitably endorsed/stamped by the Customs Officers (A. O./E. O.) to the effect
that the goods will be transhipped at the Gateway Port for their destination outside
India. The E. P. copy will be finally endorsed only after receipt of transference copy
evidencing despatch of goods from Gateway Port.
The two transference copies of the Shipping Bills shall be placed in a sealed
envelope and handed over to the steamer agent who will be responsible for
producing it alongwith the container to the Customs Preventive/Boarding Officer at
the Gateway Port.
The shipping agent will continue to file EGM in respect of containers
transhipped to Gateway Port.
7.42
Procedure for Export of Containers at the Gateway Port:
The containers at Gateway Port will be unloaded and kept in a separate block
under supervision of Customs Preventive officer/Boarding officer. The steamer agent
will enter the name of the vessel, through which the goods are exported from the
274
Gateway Port, on both the transference copies of the shipping bill and have them
endorsed by the Boarding Officer at the Gateway Port.
The Boarding Officer or Customs Preventive Officer nominated at Gateway
Port should endorse the two transference copies of the shipping bill in the following
manner:
(i)
Inspected and found seals intact on containers bearing the marks and
numbers.
(ii)
The Customs seals on the above mentioned containers are intact.
(iii)
All the containers mentioned above have been shipped under my
supervision by vessel.
(iv)
Will endorse the name of the mother vessel on both the transference
copies.
If the seals of the containers are found broken by the Customs at the Gateway
Port or anything is suspected suggesting tampering etc., Customs may examine the
goods and make suitable endorsement on the transference copies of the shipping
bills. In that eventuality, goods can be examined by Appraising Officer nominated for
the purpose at Gateway Port. Unless there is strong suspicion that tampering has
actually taken place, the container should not normally be held back. In the event of
it being decided to carry out examination, this would be arranged by steamer agents
who will produce necessary documents like copy of shipping bills, invoices etc.
As regards short shipment/shut out cargo from Gateway Port, existing
procedure at Gateway Port will be followed with suitable endorsement in
Transference copies.
Immediately after shipment of goods from Gateway Port, the Customs
Preventive Officer/Boarding Officer will handover one transference copy to the
shipping agent on the strength of which EGM would be filed at that port. The Second
transference copy in a sealed cover will be handed over to Steamer Agent who will
submit the same to Assistant Commissioner, Preventive (General) of New Custom
House, Mumbai. Assistant Commissioner, Preventive (General), New Custom House
will make arrangement to endorse EP/AR4 copies.
275
After endorsing the EP Copy/AR4, the Assistant Commissioner, Preventive
(General) will forward the transference copy of the shipping bill to the respective
Assistant Commissioner (Exports/Drawback / Group VII) who will process
documents as per the prescribed procedure for drawback DEC, DEPB benefits etc.
[ Public Notice No. 81 issued by Commissioner of Customs (E. P ), Mumbai,
from F. No. S/6B-4535/98 EXP. ]
( 2 ) In continuation to earlier Public Notice 81 Dated 09.07.1998, it is notified for
information of all Steamer Agents, CHAs, Exporters and all others concerned that to
facilitate movement of import/export cargo emanating from Mumbai port to be
shipped from another gateway port, the following procedure is prescribed:
1.
On the import side, the imported goods can be allowed for transhipment
under Goods Imported (Conditions of Transhipment) Regulations, 1995, whereby
transhipment is allowed if the importer or the agent makes an application to the
proper officer seeking permission for transhipment of the imported goods as
manifested for transhipment to the said customs port. The transhipment of imported
goods at these ports may therefore be allowed liberally.
2.
For Export goods, the shipping bill may be passed at New Custom House
Mumbai and export be allowed, subject to the execution of a bond (sample bond
enclosed) and the export goods are manifested for the final destination through the
transhipment port (hub port) like say “To Amsterdam through J.N. port”.
3.
As per the Drawback Rules the drawback is to be paid when the shipping bills
are passed and goods are loaded in ICD/CFS or port. The drawback may be paid to
the exporters as soon as the shipping bill is passed and goods are shipped at the
originating port, subject to the condition that the necessary bond has been executed
by the Steamer Agent to bring back and submit the proof of export to the Custom
House within 90 days. For endorsement and release of AR4 the procedure
prescribed by Board Circular No. 354/70/97-CX-6 dated 13.11.1997 will be followed.
276
The submission of proof of export by the Steamer Agent will be strictly monitored by
the Custom house.
4.
For the amendment of shipping bills from foreign going vessel to coastal run
in case the shipment is not effected in the original vessel, the Exporters / CHA may
apply to the proper officer for amendment of shipping bill after attaching
two
additional copies of shipping bills each duly stamped as „True Copy‟ and
„Transference Copy‟, duly certified by the A. C. / D.C. Export.
5.
Only those steamer agents, who are registered at NCH, Mumbai can operate
the vessel for export / import of goods from / to Mumbai port through gateway ports.
6.
Bond to be executed by the shipping agent shall be as prescribed by C.C.
(E.P.), NCH, Mumbai and the validity of the said bond shall be one year from the
date of execution.
[ Public Notice No. 89 / 99 dated 03.08.1999 issued by Commissioner of
Customs ( Export Promotion ), New Custom House, Mumbai, from F. No. S/6B
– 4535 / 98 EXP. ]
SAMPLE BOND
BOND REQUIRED AS PER PUBLIC NOTICE NO. 89 DATED 03.08.99 ISSUED BY
THE COMMISSIONER OF CUSTOMS (E.P.), NEW CUSTOMS HOUSE, MUMBAI.
( TO BE EXCUTED BY STEAMER AGENT )
KNOW ALL MEN BY THESE PRESENTS THAT, WE……………………..
HEREINAFTER CALLED “THE STEAMER AGENT” (WHICH EXPRESSION SHALL
INCLUDE
HIS
ADMINISTRATORS
SUCCESSORS/HEIRS,
AND
LEGAL
ASSIGNEES,
EXECUTORS,
REPRESENTATIVES),
AND
WE……………………. THE “SURETY” (WHICH EXPRESSION SHALL INCLUDE
OUR
SUCCESSORS/HEIRS,
ASSIGNESS,
EXECUTORS
AND
LEGAL
277
REPRESENTATIVES) ARE HELD AND FIRMLY BOUND TO THE PRESIDENT OF
INDIA , HEREINAFTER CALLED THE “PRESIDENT” (WHICH EXPRESSION
SHALL INCLUDE HIS SUCCESSORS & ASSIGNEES), A SUM OF RS…………(IN
WORLDS)…………………….) TO BE PAID TO THE PRESIDENT, FOR WHICH
PAYMENT WILL BE TRULY MADE WE BIND OURSELVES, OUR SUCCESSORS,
HEIRS, EXECUTORS, ADMINISTRATORS AND LEGAL REPRESENTATIVES
FIRMLY BY THESE PRESENT.
SEALED WITH OUR SEAL ON THIS
DAY OF
(
MONTH/YEAR)
WHEREAS THE SAID STEAMER AGENT M/S
HAS
APPLIED
TO
THE ASSISTANT/DEPUTY COMMISSIONER (E.P.), NEW CUSTOM
HOUSE, MUMBAI (HEREIN AFTER CALLED THE PROPER OFFICER) AND THE
SAID OFFICER HAS AGREED TO ALLOW TRANSHIPMENT OF GOODS
FROM/TO
THE
PORT
OF
MUMBAI
TO/FROM
GATEWAY
PORT
FOR
EXPORT/IMPORT OF THE GOODS,
NOW THE CONDITIONS OF THE ABOVE WRITTEN BOND ARE SUCH
THAT,
1)
IF THE SAID STEAMER AGENT CAUSES THE SAID GOODS TO BE FULLY
AND SAFELY TRANSHIPPED TO/FROM THE SAID GATEWAY PORT AND
PRODUCE TO THE PROPER OFFICER AND DULY ACCOUNTED FOR AT
THE GATEWAY PORT WITHIN 90 DAYS FROM THE DATE OF SHIPMENT
OR CAUSES THE SAID GOODS TO BE OTHERWISE ACCOUNTED FOR,
TO THE SATISFACTION OF SUCH OFFICER, AND
2)
IF THE STEAMER AGENT PRODUCES , WITHIN 90 DAYS OF SHIPMENT,
TO NEW CUSTOMS HOUSE MUMBAI A TRANSFERENCE COPY OF THE
GATEWAY PORT THROUGH WHICH THE SAID GOODS ARE EXPORTED
/ IMPORTED AND,
278
3)
IF THE SAID GOODS/CONTAINERS ARE TRANSHIPPED WITHOUT ANY
DAMAGE OR SHORTAGES WITHIN A REASONABLE TIME OR WITHIN
SUCH EXTENDED TIME AS MAY BE PERMITTED BY THE PROPER
OFFICER,
THEN THE ABOVE WRITTEN BOND SHALL BE VOID AND OF NO EFFECT
OTHERWISE THE SAME SHALL REMAIN IN FULL FORCE AND VIRTUE.
AND IT IS HEREBY AGREED AND DECLARED BY PARTIES AS FOLLOWS
:
1.
THIS BOND IS GIVEN UNDER THE ORDER OF THE CENTRAL
GOVERNMENT FOR THE PERFORMANCE OF AN ACT IN WHICH
THE PUBLIC ARE INTERESTED.
2.
THE BOND SHALL REMAIN IN FORCE OF A PERIOD OF ONE
YEAR FROM THE DATE HERE OF.
3.
THIS BOND SHALL BE ENFORCEABLE AGAINST THE SURETY
NOTWITHSTANDING THAT PROCEEDINGS HAVE NOT BEEN
TAKE AGAINST THE EXPORTER/IMPORTER.
4.
THE ASSISTANT/DEPUTY COMMISSIONER OF CUSTOMS (E.P.),
NEW CUSTOMS HOUSE, MUMBAI OR ANY OTHER OFFICER OF
THE GOVERNMENT OF INDIA SHALL HAVE FULL LIBERTY
WITHOUT
REFERENCE
TO
THE
SURETY
AND
WITHOUT
EFFECTING THE GUARANTEE TO POSTPONE FOR ANY TIME OR
FROM TIME TO TIME THE EXERCISE OF ANY OF THE POWERS
AND RIGHTS CONFERRED ON THEM BY LAW OR THIS BOND
AND EITHER OR FORBEAR TO ENFORCE ANY SUCH POWERS
AND RIGHTS OR ANY REMEDY AGAINST THE STEAMER AGENT
AND THE SURETY SHALL NOT BE RELEASED BY ANY SUCH
EXERCISE OR NON EXERCISE BY THE ASSISTANT / DEPUTY
279
COMMISSIONER OF CUSTOMS (E.P.), AND / OR OTHER OFFICER
OF THE GOVERNMENT OF INDIA WITHOUT NOTICE TO OR
CONSENT OF THE SURETY OR BY REASON OF TIME BEING
GIVEN TO THE STEAMER AGENT OR BY ANY OTHER FOR
BEARANCE , ACT OR OMMISSON ON THE PART OF THE
GOVERNMENT OFFICER TO THE STEAMER AGENT WHICH
UNDER THE LAW RELATING TO SURETY WOULD BUT FOR THIS
HAVE THE EFFECT OF REALISING THE SURETY. IN ORDER TO
GIVE EFFECT TO THIS GUARANTEE THE PRESIDENT SHALL BE
ENTITLED TO ACT AS IF THE SURETY WAS THE PRINCIPAL
OBLIGE AND THE SURETY WAIVE ALL RIGHTS AS SURETY AND
OTHER RIGHTS WHICH MAY BE INCONSISTENT WITH THE
ABOVE PROVISIONS.
5.
THE REIGHTS OF THE PRESIDENT TO RECOVER THE SAID
AMOUNT FROM THE SURETY IN THE MANNER AFORESAID WILL
NOT BE AFFECTED OR SUSPENDED BY REASON OF THE FACT
THAT ANY DISPUTES HAVE BEEN RAISED BY THE STEAMER
AGENT WITHREGARD TO THE LIABILITY OF OR THAT ANY
PROCEEDINGS ARE PENDING BEFORE ANY OFFICER, TRIBUNAL
OR COURT WITH REGARD THERETO OR IN CONNECTION
THEREWITH.
6.
THE
GUARANTEE
HEREIN
CONTAINED
SHALL
NOT
BE
DETERMINED OR AFFECTED BY THE LIQUIDATION OR WINDING
UP OR CHANGE OF CONSTITUTION OF THE STEAMER AGENT
OR OF THE SURETY.
7.
THE
PRESIDENT
THROUGH
THE
ASSISTANT
/
DEPUT
COMMISSIONER OF CUSTOMS (E.P.). NEW CUSTOM HOUSE
MUMBAI OR ANY OTHER OFFICER MAY RECOVER THE SAID
SUM OF RS………….(RS. IN WORDS………………………….) OR
PORTION THERE OF IN THE MANNER LAID IN SECTION 142 OF
280
THE CUSTOM ACT 1962 WITHOUT PREJUDICE TO ANY OTHER
MODE OF RECOVERY.
8.
THE SURETY HAS POWER TO GIVE THIS GUARANTEE IN
FAVOUR OF THE PRESIDENT AND SIGNATORY OF THIS BOND
ON BEHALF OF THE SURETY HAS FULL POWER TO SIGN THIS
BOND.
9.
THE GUARANTEE HEREBY GIVEN SHALLBE A CONTINUING ONE
AND SHALL NOT BE REVOKED BY THE SURETY WITHOUT THE
CONSENT OF THE PRESIDENT OR THE COMMISSIONER OF
CUSTOMS (E.P.), MUMBAI.
IN WITNESS WHERE OF THE STEAMER AGENT AND THE SURETY
HAVE HEREIN SET AND SUBSCRIBED THEIR RESPECTIVE HANDS AND
SEALS THE DAY, MONTH AND YEAR FIRST WRITTEN.
SIGNED AND DELIVERED BY AND ON BEHALF OF
THE STEAMER AGENT IN PRESENCE OF :-
SIGNED AND DELIVERED BY AND ON BEHALF OF SURETY IN
7.43. Export through ICDs / CFSs – Speedy Acceptance of Proof of Exports
It has been brought to the notice of the Board that there are inordinate delays
in acceptance of proof of export where goods are exported through and Inland
Container Depot/Customs Freight Stations (ICDs/CFSs) because of delayed
receipt/non-receipt of the Transference Copies from the Customs formations at the
port of exit. This causes delay in getting rebate claims or in fulfillment of conditions of
bonds executed for exports without payment of duty. In many cases, rebate claims
are rejected or the demands are raised for non-submission of proof of exports within
the stipulated period of six months from the date of export.
281
It has been decided by the Board that for exports through ICDs/CFSs, a
revised procedure should be followed in respect of the acceptance of proof of
exports which is as follows: -
The Appraiser/Superintendent (Shed) will give a certificate in Part-B of the
Original, Duplicate and Sixtuplicate copies of AR-4/AR-5 simultaneously when he
gives the Let Export Order on the shipping Bills in terms of Section 51 of the
Customs Act, 1962. This certificate shall be in the following form in lieu of the format
given in Part – B of the AR-4/AR-5: Certificate that the consignment was stuffed in Container No(s) …………..under
Shipping Bill No…………….dated…………….for which the Let Export Order was
given on ………. the day of……………… The Customs at the ICD/CFS will send the
duplicate copy of AR-4/AR-5 to the address given at Sl. No. 1 of the AR-4/AR-5 (the
concerned Jurisdictional Assistant Commissioner of the Maritime Commissioner) and
hand over the Original and Sixtuplicate copies to the exporter. A provision has
already been made under the instructions of the Board that the duplicate AR-4/AR-5
can be given to the exporter his authorised agent on his request in a sealed cover for
presenting to the rebate sanctioning authority or the authority before whom the bond
is executed.
Under the present procedure, the Transference Copies of the Shipping Bill
(TR-I & TR-II) move along with the goods from ICD/CFS to the port of shipment and
are endorsed with the details of Mate Receipt No., name of the issuing person,
details of the cases/cartons/packages/container, name of the ship, date of sailing
and the port of sailing – by the officer of Customs (Preventive Officer) who
supervises the shipment. One copy of TR is received back in ICD/CFS on the basis
of which the officers of Customs at ICD/CFS complete the Part-B of AR-4/AR-5. This
TR copy is required at ICDs/CFSs for logging the DEEC Book, in the cases where
the exports are effected under the Duty Exemption Scheme.
Under the modified procedure, the Customs formations (ICDs/CFSs),
immediately after completing the DEEC Book logging, wherever applicable, will
282
forward this Transference Copy to the same postal address where they had
forwarded the corresponding AR-4/AR-5. To facilitate this, the exporters are required
to indicate on the TR copies the same postal address to the concerned Central
Excise formalities, as mention in the corresponding AR-4/AR-5 and this requirement
should be duly reiterated and impressed upon, in the Trade Notice/Public Notice.
This TR copy should be used as the corroborative evidence for acceptance of proof
of export outside India.
Where the TR copy is not received from the Port of Shipment within 30 days
of the Let Export Order, the exporter may present the relevant Mates Receipt issued
by the shipping line at the time of loading of container(s) on board the ships and Bill
of Lading, to the Jurisdictional Assistant Commissioner of Central Excise or the
Maritime Commissioner, as the case may be. These should be accepted for the
purpose of verifying the shipment of the goods at the Gateway port. After verification,
that goods have actually been exported, the rebate claims should be sanctioned or
the bond should be discharged, as the case may be.
A post facto verification shall be done by the Central Excise Divisions. The file
for acceptance of proof of export shall be closed, once TR copy is received from
ICD/CFS within 120 days of the Let Export Order containing details of actual export.
In case TR copy is not received within 120 days, the exporter may submit the Bank
Realisation Certificate of export receipts in Original along with certified copy of this
certificate. The Original will be returned to exporter after verification, and the certified
copy will be retained in the Central Excise Division. If found in order, file regarding
acceptance of proof of export will be closed.
If TR copy or Bank Realisation Certificate is not received within 180 days of
clearance for exports, where exports are effected under bond, action for recovery
should be taken in terms of Rule 14A of the Central Excise Rules, 1944.
In the interest of export promotion, it is imperative that full advantage of
modern means of communication, which are not only speedy but also economical is
taken by the offices of Customs (Docks) and the Central Excise Divisions. They are
already computerised upto Range level. Verification on E-mail with the help of TR
283
copy retained at the Gateway Port should be encouraged. The hard copies
(printouts) can be retained for official records.
For proper monitoring of the cases, a register should be maintained in the
Central Excise Division in the format given in Annexure I.
Other procedures contained in Board‟s Circular No. 81/81/94-CX dated
25.11.94. No. 87/87/94-CX dated 26.12.94 and No. 129/40/95-CX dated 29.5.95 will
remain the same.
[ Board‘s Circular No. 354/70/97-CX dated 13.11.97 in F. No. 209/54/97-CX.6 ]
Proof of Export
Post Factor Verification
Register
Note: (To be written on the Cover)
II.
Authority : Board‟s Circular ……../………/9…..- CX
dated ………..(F. No. 209/54/97-SC.6) Trade Notice
No. ……../9 dt. ……………….
Signature
(Name in Block Letters)
Supdt.
of
Central
Excise
(Tech. Division)
Note: (First Page of the Register)
III.
Index : (Range-wise)
Sl. No.
Name of the Exporter
Page Nos. (…………..to………..)
(1)
(2)
(3)
284
Note: Allot first few pages for Index : make index for every Range enter exporters
name
Alphabetically as far as possible).
IV. Format
___________________________________________________________________
__________________Sl. Name of the Date of Let
Date of
Date
of
No.
&
Shipping Bill AR-4/AR-5
No.
Exporter
Export Order Discharge
Sanction of No. Date
Date
of Bond
(1)
(2)
(3)
rebate
4(a)**
4(b)**
(5)
(6)
ICD/CFS
Mates Receipt No. Vessel (Name)
Bill
of Lading
& Date
No. & Date
Shipping Line
(7)
(8)
(9)
10 (a)
10 (b)
Date of Receipt of TR
Remarks
Bank of Realisation**
Date of submission of
Action
Taken
285
(11)**
(12)**
(14)
Note: “**” Strike out whichever is not applicable.
(13)
286
CHAPTER – EIGHT
8.1.
INDIAN CUSTOMS ELECTRONIC DATA INTERCHANGE SYSTEM (ICES)
Indian Customs EDI System (ICES) was made operational as a pilot project at
Delhi Air Cargo in 1995 and has been gradually expanded to other sites. Initially the
System was designed and implemented by Officers of Delhi Customs and National
Informatics Center. The existing manual procedures which were operational in
Custom Houses for several decades were minutely examined and re-engineered for
converting them into automated systems to improve productivity and efficiency of
Customs Department and facilitate the trade.
ICES (Export) and (Import) are being continuously modified to bring in remaining
activities and new requirements due to change in laws, policies and procedures.
After creation of the Directorate General of Systems, further development activities
and expansion of Systems to other locations, have been undertaken by the
Directorate General since 1997. ICES is being maintained by Officers of the
Directorate General of Systems, supported by a central team of officers from
National Informatics Center for development and maintenance of Software. For
support at sites NIC has deployed persons at each of the locations. To impart a
working knowledge of the ICES to Officers, the Directorate General has come out
with a Handbook for handling Imports and Exports.
8.2.
INDIAN CUSTOMS EDI SYSTEM (ICES): An OVERVIEW
ICES is a software package which accepts Customs documents electronically from
Custom House Agents (CHA), Importers and Exporters for processing by Customs
Officers .The Bills of Entry (BE) and Shipping Bills (SB) can be submitted at the
Service Center in the ICES location or filed online over Indian Customs Gateway
(ICEGATE), using the Remote EDI System (RES).
287
Once the documents are submitted in the ICES, the BE/SB is then processed
electronically by the designated Officer without requirement of paper movement as in
the case of Manual BE.
ICES is designed, updated and maintained by Directorate General of Systems and
Data Management with the logistic support of National Informatics Centre. It
comprises two major sub-systems, namely
ICES/I for Processing of Import documents
ICES/E for Processing of Export documents
ICES/I consists of the following main modules:
*Service Centre
*IGM
*Appraising
*Assistant Commissioner
* Bank
*Examination
*Licence
* DEEC
*SAPTA
* DEPB
* Audit
* Bonds
*Baggage
*DFRC
*
Refund
*EPCG
* Tariff Value
*Anti-Dumping duty
*Re-import
*Preferential Rate
*Systems Manager *Preventive Officer
*MIS
288
ICES/E consists of the following main Modules
*Service Center *Examination
*Duty Drawback * Licence Registration
*DEEC/DFRC/EPCG Assessment *DEPB verification
*Additional
Commissioner
*EGM
*Assistant Commissioner
*Preventive Officer
*Systems Manager
*MIS
These modules are integrated in the System to facilitate the role of each Designated
Officer in processing the documents filed in the ICES in the same lines as in manual
mode but without the necessity of involving the physical presence of the
CHA/Importer/Exporter. The CHA/Importer/Exporter presence is at the bare
minimum till the goods are presented for examination. ICES ensure efficiency,
accuracy, transparency and integrity of transactions. Computation functions like Duty
calculation and Duty Drawback, ledger maintenance for Bonds, DEPB, DEEC, DFRC
and EPCG are online, which enables highest level of efficiency and accuracy. This
has enabled zero errors in maintenance of these ledgers and reduction in Audit
Objections and total transparency in transaction.
The role of each Officer is defined and access levels are maintained as per assigned
roles. Depending upon the role of the Officer, the access level may vary. Updation of
Data to the extent permitted can be done only by authorised roles. Wherever the limit
289
is exceeded or unauthorized entries are made the system shall not permit such
changes. Thus when the role is assigned, the activities are confined to that role in
specific.
8.3.
Login into the ICES
To be able to login into the ICES one has to be allocated a User-ID by the Systems
Manager. The User-ID carries certain privileges and access is limited to the role
assigned. The Unix password and the Oracle Password should be changed
immediately after the first Logon. Password should be regularly changed to maintain
security.
How to Login?
To open the login screen click on the icon, Server (or TNVT Plus) and enter your
User-ID and Password, in the Oracle Screen enter the User-ID again and enter your
Oracle password. The Main Menu opens up, from which options as desired maybe
chosen to commence work. In case of any difficulty the System Manager should be
contacted and problem solved
Use of Function Keys
Function Keys F1 to F12 are available on the top row of the standard Key Board.
These are single touch screens that enable pre-defined functions. Some of the Keys
have been enabled in the applications in the ICES, which are shown in the Message
Box/Bar. The keys may not be enabled in all menu‟s
290
Function key
Purpose
F2
Display sub Menu Option
F7
Help on Directory
F4
Save and Continue
F3
Exit without saving
TAB
ESC F11
F12
F4+ F3
ESC F6
8.4.
To move to previous
To clear the field
Help
Save and Exit
Copy the value of previous
record
Help Facility
Help (list) facility has been provided for all directories maintained by the system and
on functional parameters, namely BE No, SB No, Standard Examination orders,
Bond Registration No, and Licence Registration number. System at the bottom of the
screen displays a following message wherever help facility has been provided.
Press < F7> for help.
On pressing the key, the system displays the directories in alphabetic order and BE
No., Bond & Licence Registration number in ascending order.
In order to find a particular code or name, the user has to scroll through the window
by pressing <UP> or <DOWN> arrow key.
291
Particular code can be located by pressing the <TAB> KEY. On pressing the <TAB>
key, curser moves to „FIND‟ block. Here, enter the first few character of the string to
be located and press <RETURN> key. On pressing the key, the curser moves to be
first located record, which matches with the given string. If there is no data related to
the string, a blank window appears .To repeat the process, enter the proper string.
User has to select the code by pressing the <RETURN> KEY.
8.5.
ICES/EXPORT
ICES/E has defined number of roles for Customs officers to process the Shipping
Bills, which are similar to the current assignment in the manual mode in the Custom
House. Each Officer has an assigned role in processing the documents. ICES not
only defines the roles but also restricts the access to the documents specific to that
role. Thus, once the role is assigned, system access is confined to the activities
specified for the role.
Following are the roles defined in ICES/E:
Assistant Commissioner (Export)
DEEC/DEPB Appraiser/Superintendent
Exam Appraiser/Superintendent
Examination Inspector/Examiner
DEPB verification Appraise/Supt
Appraiser/Superintendent (DBK)
Assistant Commissioner (DBK)
Additional Commissioner
Systems Manager
EGM Administration
End of day operator
Beginning of day operator
The role of systems Manager is very critical in the ICES implementation. Therefore,
the first step to operationalise the Systems is designating of the Systems Manager
(SM). SM has two major responsibilities – one related to System Administration and
Security, the second the management functions w.r.t. Processing of SBs.
292
As System Administrator, the SM will be the owner of „root‟ password of the system
and will be performing the following:
-
Registering the new users
-
Deleting the users
-
Disable all users from using system (kill all users)
-
Disable specific user from using the system (kill specific user)
-
Generation of Security reports such as Oracle alert messages, commands
used by root and Oracle users etc.
8.6.
The management functions of SM w.r.t. Processing of documents is as
follows:
As far as directory managements are concerned Exchange rate directory, DBK
schedule rate, Export Cess directory are updating centrally by snapshot to all ICES
locations. New addition and modification of IEC directory are done by DGFT centrally
automatically. These directories are centrally created in a server known as Kandla
Server I located at C.R.Building, New Delhi. Other directories like AD code, CHA
directory etc maintained locally at ICES system.
In the Sea Ports Shipping line, Shipping Agents directory also have to be created.
Rest of the directories such as:-Airline, Airports, Currency Code, Country Code etc.
will be created at the time of installation of ICES. However, these directories have to
be scrutinized and updated.
- Monitoring of system performance.
- Housekeeping activities.
- Registering of transfers of Appraiser/ Superintendents and Examiner/
Inspector from one warehouse to other.
Apart from above management functions, ICES enables SM to monitor the document
clearing statistics such as
-
No. of SBs file category-wise
293
-
No. of LEOs given
-
Date wise duty drawback sanctions
-
Officer-wise DBK sanctions.
-
Warehouse-wise No. of SBs processed etc.
8.7.
The pre-requisites for filing the SB with ICES are:
a)
The Exporter has to open account in the designated bank for crediting of
DBK amount and the same has to be registered on the system, without which the
DBK SBs will not get submitted. This is essential for automatic remittance of DBK
amount to the Exporter‟s account.
b)
Exports under DEEC scheme require that the DEEC advance Licence or
Application has to be registered with the system.
The exporter also has open to an account with the Authorised foreign Exchange
dealer (AD) and get the same registered in the system.
The Custom House has to nominate an officer for registering the AD code and the
Bank account number. The DEEC Licence registration will be done by DEEC
Section.
8.8.
Processing Of Shipping Bills through ICES (E).
A shipping Bill can be submitted to the Customs for processing, either through
the
Service Centre, or through EDI over ICEGATE using RES Package.
a)
CHA/Exporter has to submit the Export declaration in the prescribed
form (Annexure A) (Declaration form for export enclosed). Service Centre
assigns a job No. to the declaration
b)
Job is entered and checklist is generated.
c)
The checklist has to be thoroughly verified by the Exporter/ CHA and
corrections, if any have to mark.
d)
The Service Centre operator makes the corrections and the Job is
submitted to Customs. A SB No. is allotted. After the submission of the
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job, it becomes a Customs document and no amendment is possible. The SB
No. is recorded on the declaration form and is returned to the CHA.
e)
The queries raised by Customs Officer are printed in Service Centre
and replies to queries are entered through Service Centre. Request for
amendment of SB are also filed through Service Centre.
f)
Processing status of the document can be enquired through Enquiry
counter. SBs status with respect to AC‟s clearance, DBK processing etc. can
be enquired through the counter.
8.9.
a)
Remote EDI System (RES) through ICEGATE
Software for RES package is available in the CBEC website, any importer
and exporter can down loaded the same free of cost.
b)
Exporter /CHA can file SB through ICEGATE service.
c) The data is loaded in the ICES database and validation take place if any
error/mistake a negative acknowledgement will sent to the CHA/Exporter with details
of error and if no error SB number will be assigned and it become a customs
document and process of document start as per ICES procedure. If the goods are
not registered in the system within 7 days in case of air and 30 days in case of
sea/ICD, the shipping bill will get purged automatically.
After the submission of the SB, its routing on the system is automatic. SB is put to the
AC (Export) queue under the following conditions.
DEEC SB
- DEEC SBs over Rs. 1,00,000 of FOB value is routed to
AC (Export)
DBK SB
- DBK over Rs. One lakh.
Duty free SB
- FOB value over Rs. 10 lakhs
DEPB
- FOB value 5 lakhs
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Free trade samples - FOB value over Rs. 25,000 rest of the documents are
directly to the examination queue.
AC (Exports)
SBs moved to AC have to be endorsed. The SBs are automatically displayed on
AC‟s screen on first cum-first-serve basis. AC can view the SB and raise query to
CHA for clarification, if any.
The queried SBs are put in AC‟s queue back on receipt of reply from the exporter.
AC, after satisfying himself can give comments, through Departmental comments.
Examinations instructions, if any can be given by the AC.
In the case of DEEC SB, AC has an option to compare the items of export as per
DEEC book and SB. AC can also view the import item used in the manufacture of
the export item and compare with the DEEC book (Part C)
Amendments
AC is also responsible for approval of amendments. CHA on his own can file the
amendments to the SB or he may file the amendment at the instance of the
Customs. The amendment is filed through Service Centre. Amendment is alloed till
issue of Let Export order (LEO).
SBs for which amendments filed are removed from the processing queue till the
amendment request is processed.
Amendments are routed to AC. On approval by AC the old values are replaced by
amended values and wherever required the FOB and DBK values get recalculated.
SB is restored back to the same queue from where it was picked-up for amendment.
8.10. Registration of goods
The CHA brings the goods to the concerned warehouse along with checklist,
Annexure „C‟ and other required documents. (Declaration form for export goods
including Annexure „C‟ enclosed).
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The contents of Annexure „C‟ are as follows:
AIR: MAWB No, total No. of pkgs indicated on MAWB, Airlines name, Total
Number of Packages received against SB, S.No of the packages, HAWB No,
Factory
Stuffed
(Y/N),
seal
Number,
Mark
and
Number,
Sample
Accompanied, Gross weight, Net weight, Unit of Measurement, Packing
details
SEA: Factory stuffed (Y/N), sample accompanied (Y/N), Nature of the Cargo,
Marks & Number, Total number of packages, Number of loose packages, No
of CONTAINERS, gross Weight, Net weight, Unit of Measurement, Container
details, Packing details, rotation Number, Rotation date.
ICD & CFS: Same as above except rotation number and rotation date.
Where the EDI message with custodian is implemented part of the information
received online which is viewed by Inspector.
These parameters may not get finalized by the exporter at the time of filing the SB
(Declaration form, Annexure A), hence these are captured at the time of entry of
goods into the warehouse.
One Examiner/Inspector will be responsible for monitoring the arrival of goods at the
warehouse. He checks the Marks & Numbers, weight of the consignment and then
signs the Annexure C‟.
Normally, the inspector who has signed the Annexure „C‟ will enter the details of the
same on the system.
8.11.
Examination Norms
ICES will ensure the following at the time of registration of goods5 % of the Duty free SBs are selected for examination.
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All DBK SBs are subject to examination.
5% of the consignments subject to minimum of two packets are selected for
examination.
Packets to be examined are selected randomly.
Freight and Insurance, entered by the Inspector will result by change in the
FOB and DBK values. System will re-calculate and updates the values.
Due to change in freight etc if FOB increases the SB need appraisal by AC.
Packet Nos selected for examination are written on the checklist. After the
registration of goods, the SB is put in the Superintendent/ Inspector/Examiner/AC
depending on the category of SB.
8.12. Allotment of Inspector for Examination
At good registration stage itself, system will automatically allot the SBs to inspector
for examination. The allotment is based on weightage of SBs. For allotment of SBs
for examination, inspectors in the warehouse have to mark their attendance on
system at the beginning of each shift.
Shed Superintendent has the option to re-allocate the SB among Inspectors.
There is another procedure available in ICES for allocation of inspectors which is
explained below:
CHA approaches the Appraiser/ Superintendent for allotment of Inspector for
examination. Where there is more than one Superintendent in the warehouse, the
SB can be picked by any one of them. Superintendent can view:
The complete SB
Instructions given by AC, if any
Departmental comments given by AC, if any
Whether the SB is selected for examination or inspection
After viewing the above, Superintendent can do the following: -
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-Raise query to exporter/ CHA for clarification, if required.
-The query has to be approved by AC (shed).
-Enter departmental and send the SB to AC for clarification.
-Allot the Inspector for examination.
For allotment of Inspectors for examination, Superintendent has to mark the
attendance on system at the beginning of the shift.
System displays the list of Inspectors who are present in the warehouse on a given
day/shift with number of SBs allotted.
Superintendent can select Inspector for examination and record the Inspector name
on the checklist.
Inspection
Superintendent also has a choice of changing the examination type from inspection
to examination or vice versa in the case of duty free SBs.
8.13. Let Export Order (LEO)
Similarly, the Appraiser/Superintendent has the choice to issue LEO without
examination in case of duty free SBs.
8.14. Examination by Inspector
CHA has to approach the Inspector for examination. Inspector has to view and note
the examination instructions on the system. The Inspector has the option to view the
complete SB.
Inspector then conducts the physical examination/inspection of goods as the case
may be. He then enters the examination report on the system. Inspector has the
option to:
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- Enter departmental comments
- Mark the SB to Superintendent for clarification
- Raise query to exporter. The query is market to Superintendent for approval
- Draw samples wherever required
- Suggest DBK classification
- This classification by Inspector will be taken into consideration by DBK
processing officers.
- Recommend LEO
Inspector has to mark whether the examination instructions were followed or not and
certify whether required documents have been attached with the SB.
8.15. Let Export order
Inspector can directly update the following parameters before LEO, if required-
Gross weight, Net weight, Bank A/C No., Authorised Dealer code, GR No, RBI
Code, AWB No, Airline code (in Air customs) AR4 details, quote certificate Nos
(AEPC, CTEPC etc.)
From Inspector the SBs are marked back to superintendent
For clarification
For query approval
For issue of LEO
Inspector after examination shall submit the SB to the Superintendent for clearance.
Superintendent has to select the SB from the queue, which displays the SB No. And
forwarding reason i.e. from where, and for what purpose the SB is marked to him.
Ex: SB No. 931760 For LEO
SB No. 917631 for clarification
SB No. 913491 for allotment of inspection
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LEO
Superintendent can view the examination report for those SBs, which are
recommended for LEO and finally accord LEO.
8.16. SB Print
After issue of LEO by Superintendent, the CHA/Exporter has to go to the print
counter in the warehouse, where copies of the processed SB with examination report
will get printed.
CHA, on behalf of Exporter/Exporter has to sign on all the copies and submit the
same to the Shed Superintendent for his signature. Superintendent has to sign
Exporter copy, Customs copy and examination report.
Customs copy with examination report is attached to the document set, and is
retained by the Superintendent.
Exporter copy is handed over to CHA.
8.17. No. Of copies of SB
AIR:
3 copies –Custom/Exporter/ EP Copies EP copy is signed by Shed
Superintendent after filing of EGM.
Flight No. Date, and EGM No. is recorded on EP copy.
SEA: 2 copies of SB-Customs and Exporter copy.
EP Copy is generated after
filing of sailing report by Shipping Agents.
ICD & CFS: 5 Copies-Customs copy/ Exporter copy, TR-1, TR-2 and EP copy
8.18. Stuffing by Preventive Officer
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There is no Preventive Officer (PO) role in Air Cargo Complexes. Therefore, on issue
of LEO the SB is put in EGM queue. In the Sea Port, ICD, and CFSs, the SB is put to
PO queue after issue of LEO if containerized cargo. The PO, after stuffing of
containers will enter the following parameters:
Container No, No. of packets. On entry of container details, the SB is put in
EGM queue.
In case of short shipment the packet numbers, which are not stuffed, are also
entered. The SB is put in „Shortship-queue‟ for amendment of SB. Exporter has to
file amendment through Service Centre. After approval of amendment by AC, the SB
will be put in EGM queue.
Clarification
Superintendent can enter the clarification required in the Departmental Comments
and mark the SB back to Inspector for examination.
Query
Superintendent can approve or reject the query. Query rejected SB is market back to
Inspector for examination.
Otherwise, the SB is market to AC for final approval of query. If query rejected SB is
marked back to the Inspector for examination. Otherwise, the SB is marked to AC for
final approval of query.
8.19. Re-registration of goods
There can be data entry mistake while entering the parameters from Annexure C, at
the time of registration of goods. If errors are noticed before LEO, these can be
rectified by re-registering the goods. Superintendent has the provision for granting
permission for re-registration of goods.
Error in entry of number of packets will affect the random selection of packages for
examination. Hence, Superintendent has been provided with an option through
which goods registration can be done again.
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8.20. Amendment to SB
After LEO, amendment to SB is not permitted (except a few parameters –refer Role
of AC)
Amendment requests are filed through Service Center, after the approval by AC
(Export).
Amendments are put to queue of AC for approval. On approval, the FOB and DBK
value get recalculated.
8.21. Role of AC (EXPORT)
8.21.1.
Amendment to SB after LEO
Only AC can do amendment to SB after LEO. AC in this case collect the SBs
printed, makes the necessary changes required directly on the database and reprints
the SB. The earlier print of SB should be cancelled by marking with bold letters.
AC can amend the following parametersGross weight, Net weight, Bank account number, Authorized dealer code, GR
No, RBI Code, AWB No AND airline code (in Air Customs), AR4 details, Quota
certificate Nos (AEPC, CTPC etc).
8.21.2.
Re-print of SB
Processed SB (3 copies) is printed at the warehouse. Due to any problem, if the SB
is not printed incomplete, AC has the provision to permit re-print.
8.21.3.
Shutout
After the issue of LEO, if the consignment has to be withdrawn, CHA has to request
for shutout. AC has to enter the reasons for shutout on the system, and collect the
copies of processed SBs from CHA.
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8.21.4.
SB Cancellation
CHA has to apply to AC for cancellation of SB. AC has to enter the reasons and
grant permission for cancellation.
System automatically cancels the SB, if the consignment is not brought for
examination within7 days of issue of SB No in case of air and 30 days in case of
sea/ICD.
8.21.5.
Changes of Airlines
AC has to grant permission on system, the changes in Airlines after the issue of
LEO. AC can directly update the AWB No, and Airline code on the system and SB is
reprint with changed values
8.21.6.
Cancellation of LET EXPORT ORDER
In case where LEO is wrongly issued against a SB, AC has the option to cancel
LEO.
8.21.7.
Entry of Test Report
For those SBs, where samples are drawn, on receipt of the test report, the
Examination Inspector has to enter the report on the system. Till the entry of test
report, the Drawback SBs are not put in Drawback Superintendent queue for
processing
In the case of duty free SBs, after the entry of test report, the S/Bs are transferred to
archival database.
8.22. Export General Manifest (EGM)
After issue of LEO, the next major event in the processing of a SB is the filing of
EGM. In the case of Air the routing of SB is determined after filing of EGM, whereas
the Train summary and Exit Report submitted by Custodian at ICD s and CFS
respectively. In the sea Customs stations the sailing report submitted by port
authority determine the routing of SB. EGM gives Flight No., AWB No in the case of
Air and Vessel Name., Rotation Number, Shipping bill number in the Sea .After
recording the EGM particulars on the SB, its routing is determined as follows:
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a) Duty Free SB
Duty free SBs, both commercial and free trade sample are put to History
queue for transfer of data to archival database.
b) Duty Draw back SBs
The SBs where samples are drawn at the examination stage and test report
not received will be put in sample queue indicating that report is yet to be
entered. On entry of test reports they will be input in the DBK Superintend
queue.
The SB s where duty drawback is determined by brand rate will be put the “Brand”
queue till the registration of Brand rate. Once the brand rate is determined, the SB is
put to DBK Superintendent for processing.
All other SBs are directly put in DBK Superintendent queue for processing.
Thus, in the ICES, submission of EGM train Summary/Exit Report/Sailing Report is
the key for sanction of Duty drawback.
8.23. EGM can be filed in two ways
a) Service Center
ICES has an option for entry of EGM/ Sailing Report / Train Summary/ Exit Report
through Service Center. The agencies who are not utilizing the network services can
submit the documents to Service Centre. Service Centre after entering the data
generates a checklist for verifications. The Agencies after verifying, has to return the
document for correction and submission to Customs.
After making necessary updation to the database EGM gets submitted.
The submission process matches the critical parameters of the document with the
SB information and is put it appropriate queue.
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AIR
AWB No mentioned in the EGM is matched with AWB No on the SB. The EGM No.,
Date, flight No and date are recorded against the SB where ever the AWB No. are
matching. Similarly, the SB No Is recorded against the AWB No in EGM.
SEA
The sailing report submitted by ports contains Voyage No., Vessel name, SB No.,
Date, Container No, Port of Origin, Port of Destination etc. On submission of the
report system will match the container No mentioned in the report with SB data and
record the Voyage No, vessel name and sailing date against the SB.
ICDs
The train summary information transmitted by custodian contains the Train No, date,
Gateways port, Container No, etc. The container Nos are matched with SB data and
Train No and date is recorded against area SB.
CFS
The Exit report submitted by custodian contains Truck No, Date of exit, Container No
etc. The container No is matched with the SB date and truck No, and date is
recorded against the SB.
8.24. Exchange of information between custodian/ports/ and Shipping lines
/Airlines and customs
The following documents are transmitted electronically to customs daily.
Sailing Report
EGM
- Port Authority
- shipping lines/ Airlines
Exit Report
- CFS
Train Summary
- ICD
b.
Transmission of EGM through ICEGATE
Network service providers of the airlines can be provided with mailbox address on
ICEGATE for filing the EGM s to Customs.
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Airlines file EGM in the ICEGATE through Internet with a specified Header.
ICEGATE put this message in the respective Custom House MES. The respective
Customs ICES (E) picks up the file from MES and processes the EGM and generate
replay message to MES. ICEGATE pickup the replay message from respective
ICEGATE and reply to the original sender.
On submission of EGM, as mentioned earlier, the S/Bs are put in the appropriate
queue for further processing.
8.25. Duty Drawback processing
Only on filing the EGM, the DBK S/Bs gets eligible for processing for duty drawback
sanction. Flow of DBK S/Bs for processing is as follows:
Sample Drawn: Those S/Bs where sample are drawn at the time of
examination will be kept in the “Sample” queue till the test report is filed.
Once the test is filed, the S/B is put to DBK Superintend queue for
processing. Before entry of test report, the Inspector should ensure that
there is no discrepancy & test confirm to the declaration. In the case of
discrepancy report should not be entered in the system.
Brand Rate: S/Bs, where the drawback is claimed under “Brand” Rate
the brand rate order has to be produced DBK section, till then the SBs will
be in the “Brand” queue. On production of the certificate, the SB is retrieved
for processing, and DBK is sanctioned based on the brand rate allowed.
Rest of the DBK S/Bs are directly put to the queue of DBK
Superintendent/AC (DBK) for processing
8.26. Registration of DBK Officers
For processing of DBK claim, the DBK ACs and Superintendents have to be
registered on ICES. System Manager is responsible for creation of User accounts.
8.27.
Processing of SBs by Superintendents
S/Bs are allocated to Superintendents automatically. On first –cum-firstserve basis. i.e. SB submission date –wise.
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Once the S/B is allotted, it cannot be accessed by any other
Superintendent.
Superintendent has to view the complete S/B and compulsory view the
examination report.
Superintendent can raise query to exporter and it has to be approved by
AC. Once the query is approved, the processing of DBK is suspended till the
reply is received.
Superintendent has the option to change the DBK schedule No. and Unit
Price of the item for DBK purposes through F2 menu. On changing the Unit
Price, the FOB and DBK will get recalculated and the changes in values can be
viewed.
The S/Bs where samples are drawn, test report can be viewed by
Superintendent, he can change or enter the raw material composition
accordingly.
There is option to review the decision taken w.r.t. to change in DBK
schedule No. or Unit Price. This can be done on the current S/B under process
only. Once the S/B is forwarded to another queue, the review is not possible.
Superintendent can mark the S/B to AC (DBK) for advice. This is in the
form of departmental comments.
Superintendent can up to Rs.One lakh DBK amount and put S/B to put
the “ Scroll” in queue for onward transmission to bank.
Over Rs.One Lakh value S/B s are put to AC (DBK) for processing.
8.28. Role of AC (DBK)
Following S/Bs are put in DBK AC: S/B over Rs. One lakh of duty drawback.
S/Bs forwarded by Superintendent for clarification.
Queries raised by Superintendent
Query reply from Exporter.
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The S/Bs are assigned to AC on first –cum-first –serve basis i.e.
S/B submission date –wise.
Once the S/B is allotted, another AC cannot access it.
In case of more than one AC (DBK). SBs are allotted
automatically.
AC can view complete S/B, Departmental Comments, queries
raised.
AC has option to raise the queries to CHA/ exporter.
AC can change the Unit price for DBK purpose, FOB value and
DBK value get recalculated.
Apart from processing of S/B, AC is also responsible for certain administrative
actions such as transmission of scroll to bank after scrutiny, suspend the sanction of
drawback, monitoring of export proceed realization etc.
Generation of scroll checklist before transmitting to Bank.
Making updation of scroll.
Generation of two copies of scroll, one for Customs, the other for
Bank. The contents of the scroll are:
The S/B No., date, Exporter name, IEC, bank A/C No, Amount of DBK
sanction, DBK Superintendent identification.
The scroll has to be signed by AC and towards to bank.
System generates one scroll per day.
System generates a text file of the scroll for transmission to Bank
electronically. AC does transmission.
AC has the option to suspend sanction of DBK claim, in case of
discrepancy .AC can revoke sanction after rectification of
discrepancy by
Exporter.
Provision have been given to AC for monitoring the realization of
Export proceedings.
RBI submits a report a half yearly to Customs, mentioning the IEC,
exporter Name, S/B No, date, FOB value etc for whom the foreign
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exchange remittance is not taken place. Provision has been made to
enter the IEC Nos, so that pending duty drawbacks payment are
stopped.
o
Ac has the option to transfer the S/B from one Superintendent to
another.
o
AC has option to view various MIS reports such as
1. Pendency report for Drawback.
2. Daily SB statistics
3. Daily DBK reports
4. Top Exporters for specific period
5. Top DBK commodities for a specific period
6. DBK statistics for specific period
7. Officer wise DBK sanction report
8. Scroll summary
8.29. Supplementary claim of Drawback
Exporter/CHA has to apply to AC (DBK) /DBK Superintendent for supplementary
claim. DBK Sup. has to select the option from the menu for processing the
application. The option has the following.
Change DBK schedule No.
Change DBK Quantity.
Changing of advalorem and specific rate in case of Brand rate
items (DBK Schedule No.98.01).
Changing DBK and DEEC declaration.
Conversion of duty free S/B to DBK S/B
Conversion of non-drawback item to drawback item.
The system will calculate the new drawback value and deduct the amount already
paid. The S/B is then forwarded to AC for approval.
AC can approve or reject the claim. On rejection the original value are replaced and
S/B is transferred to archival database.
AC has the option to generate and transmit the supplementary scroll to bank.
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8.30. DEEC Logbook
System will generate Log Book after filing of EGM. The Exporter / CHA has to
approach the DEEC Superintendent for Log print. Given the DEEC registration No.
System will generate a logbook containing SB particulars filed during a given period.
8.31. DEPB /DFRC verification
When a Licence issued by DGFT, which cover multiple shipping bills. These can be
verified by DEPB Appraiser/Supt through menu option. After verification only this
Licence can register in the Import section. At the time of Registration Import system
cross check verification by export section.
The Officer verifying Licence should ensure correction of Licence No. & Shipping Bill
Nos
8.32. Assessment of DEEC/EPCG/DFRC SBs
Any S/B filed under the Licence scheme comes to Appraiser/Supt queue for
assessment. As and when exporter/CHA approaches with licence, Appraiser/Supt
can choose and pick from the queue and process the bill.
8.33. Directory Updation
Management of Directories is the responsibility of Systems Managers. A user Id
called CUSADM is created for system manager for monitoring processing statistics
and maintenance of directories- exchange rate, DBK schedule, DEPB rate, country
code, currency code etc
As far as directory managements are concerned Exchange rate directory, DBK
schedule rate, Export Cess directory are updating centrally by snapshot to all ICES
location. New addition and modification of IEC directory is done by DGFT centrally
automatically. Other directories like AD code, CHA directory, and Exporter directory.
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In the Sea Ports Shipping line, Shipping Agents directory also have to be created.
Rest of the directories such as: -Airline, Airports, Currency Code, Country Code etc.
will be created at the time of installation of ICES. However, these directories have to
be scrutinized and updated.
8.34.
EXAMINATION APPRAISER/SUPERINTENDENT
On login the System displays the following menu.
8.34.1.
Mark attendance
A Superintendent can be in charge for more than one warehouse. He has to mark
attendance for each warehouse separately.
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8.34.2.
LEO for manual S/B
For any reason SBs are filed manually, AAI/Port will send only general details of the
Shipping bills filed through manually to the system. It contains only consigner name,
consignee name, total value, description, country of dispatch etc (no item wise
details). Using this option Appraiser/Supt can give LEO for this S/BS.
8.34.3.
Print Manual LEO Details
Using this option Print can be generated for the S/B, where LEO is given.
8.34.4.
Endorse Shipping Bill
This allows the shed Superintendent to:Give Let Export Order
Reply to/from Inspector on advice sought
Approve/reject the queries raised by Inspector or Exporter
Approve/reject the request for additional packets to be examined by
Inspector.
Seek advice from AC
Seeks advice from AC to raise queries to exporter
On selection of the option, system displays the SBs pending for endorsement
a) SB marked for LEO (from Inspector)
On selection of the S/B, the system displays the examination report filed by
Inspector. If sample drawn, the details are displayed. Superintendent can
accord LEO.
b) SB marked from Inspector for advice
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When the S/B is marked from Inspector seeking permission for examination of
additional packets, the Superintendent can accept or reject the request, if
accepted additional packets to be examined have to be entered by
Superintendent.
c) SB from Inspector for queries approval
Inspector in order to get any clarification from the exporter can raise queries.
The queries have to be approved by the Superintendent first and then by AC.
d) SB from Inspector seeking permission for examination of additional
packets
When the SB is marked from Inspector seeking permission for examination of
additional packets, the Superintendent can accept or reject the request if
accepted, additional packets to be examined have to be entered by
Superintendent.
e) SB from AC after cancellation of LEO.
When the Exporter requests amendment of S/B after the LEO, the AC has to
cancel the LEO. On cancellation, the S/B is marked back to Superintendent.
The system displays the reasons for cancellation of LEO entered by AC.
Superintendent has to mark the S/B to inspector for examination.
f) SB from AC, rejecting the queries.
Superintendent in order to get any clarification from Exporter has to raise
queries. This has to be approved by the AC. If approved, the queries are
marked to Exporter.
If rejected, the S/B is marked back to Superintendent with the message.
g) SB from AC with advice
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This is the case where Superintendent has sought advice from AC and AC
replies back. The correspondence between Superintendent and AC are in
the form of Departmental Comments.
f) SB from Exporter with replay to queries raised
Superintendent in order to get clarification regarding the S/B from Exporter
has to reply queries through Service Center.
Superintendent can view the replay given by exporter. After viewing the
replay, Superintendent has the option toGive LEO
Mark to the Inspector for re-examination or
Mark to AC for advice
8.34.5.
Transfer of an SB from one Inspector to other
The option allows the Superintendent to transfer a S/B s from one
Inspector to other.
The Superintendent transfers the S/B s under following situations:Inspector is not able to complete examination of S/B s allotted and
requests for transfer of some S/Bs to another Inspector.
Inspector is not available for examination.
In such cases this option has to be selected.
8.34.6.
View Shipping bill
Complete details S/Bs under process (for which LEO is not given) can viewed
through the option. The view is from current database, not from history or backup
database.
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8.34.7.
Restore SB to reentry of Registration of goods
This option is used before LEO is given and when problem identified at Registration
entry, AWB, net weight, seal no, packet details.
8.34.8.
Release SB (SB being processed by another user)
When the Inspector or Superintendent gets the message „ S/B being processed by
another Use‟, then this option is to be made use of. This happen when there is
sudden disruption in power or due to some abnormal termination while working on
the specific shipping bill.
8.34.9.
Demarking of Inspector
This option is used for demarking of inspector from one warehouse
8.34.10.
Cancel unreplied queries
This option is used for cancellation unreplied queries by CHA/ Exporter for a long
period.
8.35.
EXAMINATION INSPECTOR/EXAMINER
S/B is put in queue for Inspector for examination by the system automatically based
on workload after login by the Inspector.
While examining the consignment, Inspector has to view the instruction of the
warehouse Superintendent. After entering of the examination report, the SB is
marked back to Superintendent for giving LEO. Inspector has the option to view the
SBs allocated.
On login by the Inspector the System displays the following mail menu.
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8.35.1.
Mark Attendance
Inspector has to mark the attendance on the systems. If not made attendance S/Bs
will not get allotted by the system.
8.35.2.
Examination Report
After Registration of Annexure C, system allots Inspector for examination of
consignment. The Inspector before examination the consignment has the facility to
view and perform the following on the system.
a. View complete S/B
b. View
and
note
the
examination
instruction
issued
by
the
Superintendent.
c. View the packet number to be examined.
d. Check the Airway bill no, freight and insurance charges mentioned on
the Airway bill (document attached) and the entries in the system. In
the case of discrepancy, modify the same.
317
After viewing the above, Inspector has to carryout the examination of the
consignment and enter the examination report. If sample are drawn, the
details have to be entered.
Inspector has the options to: Raise a query to Exporter. The query has to be approved by
Superintendent and AC.
Forward the S/B to AC, or clarification or guidance by writing the
same in the Departmental Comments.
Write
the
examination
report,
mentioning
whether
the
consignment is found in order or not and whether LEO is
permitted. The S/B has to be marked to Superintendent for final
action.
Inspector has following view options:View SB
- view Full S/B details
Examination-
To carry out filing examination report and to draw
Sample.
DBK schedule - To view draw back schedule
Dept Commd - To view and Add Departmental Comments
Queries
- To forward the S/B to examination Superintendent.
Forward SB
8.35.3.
- To exit
Examination report
Through the option examination report, particulars regarding sample drawn can be
entered and can also view the details of the previous sample drawn for the S/B.
8.35.4.
View Sample History
Select the option to view the sample previously drawn for the S/B
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8.36.
Examination report entry has the following steps: Verify whether required documents are attached with the S/B or not.
Confirm whether the examination instructions are followed or not
and finally enter the report by replying to the system queries in
terms of yes or no. The screen display for entry of examination
report is as follows.
Inspector has to reply to the queries in terms of “ Yes” or “ No”. The display is selfexplanatory.
Press “Y” if as per declaration, otherwise “N”.
On pressing “N” a pop-up is opened for entry of remarks.
8.37. Forward SB
Press F2 and enter “F” to forward the SB to Superintendent.
For LEO: - If S/B is in order, after entry of examination report
forward to Superintendent for LEO.
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Please Advice:- Is chosen when the Inspector decides to put
any departmental comments on the S/B and forward it to the
Superintendent for his comments.
For more packets:- Forwarding the S/B to the Superintendent for
grant of permission to examine more packets.
For query approval:- Forwarding for query approval.
8.38. Registration of Goods
CHA/Exporter after getting carting order and paying the terminal charges
bring the consignment to the concern warehouse. At the warehouse Inspector
designated for receipt of goods registration of the goods received. The information
required at the time of registration are bought by CHA.(Annexure C of Public notice).
Parameters to be entered are:
AIR:
MAWB No, Airlines name, Total Number of Packages, H AWB
No, Factory Stuffed (Y/N), seal Number, Mark and Number,
Sample Accompanied, Gross weight, Net weight, Unit of
Measurement, Packing details
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SEA:
Factory stuffed (Y/N), sample accompanied (Y/N), Nature of the
Cargo, Marks & Number, Total number of packages, Number of
loose packages, No of CONTAINERS, gross Weight, Net
weight, Unit of Measurement, Container details, Packing details,
rotation Number, Rotation date.
ICD & CFS: All parameters except rotation number and rotation date.
System on entry of packages No randomly select the packet Nos to be
examined.
Number of packet to examined is as per the following criteria:
Factory stuffed Export goods - 0% (unless specific intelligent).
Duty Free S/B (with no incentive) - 0% (unless specific intelligent).
DBK/DEPB incentive less than Rs.1 lakh – 25 % for sensitive country & 2
% for
Others.
DBK/DEPB incentive more than Rs.5 lakh – 50 % for sensitive country
&10 % for
Others.
EPCG/DEEC FOB value less than Rs.1 lakh – 25 % for sensitive country &
2%
for
others
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EPCG/DEEC FOB value more than Rs.5 lakh – 50 % for sensitive country
&10 %
for
others
(System manager through his menu option can change these norms using
examination norms under directory management depending on sensitiveness of the
cargo or based on the instruction from the CBEC)
When the Registration is over, system automatically allocates the inspector for
examination. Customs officer, who is allocate the Inspector for record the inspector
name and packet selected on the checklist.
8.39. Sample test report entry
On receipt of test report from the testing agency, Inspector of the concerned
warehouse is responsible for entry of report.
On entry of S/B No, system will display the Sample No., Officer ID who has drawn the
sample, testing agency and test to be performed. Inspector has to enter, the test
report. Test report should be entered in the system only where the results are
satisfactory. In case of discrepancy report should not be enter.
8.40. Change net weight/gross weight/AR4/Quota before LEO
Inspector has the option to amend the following parameters before forwarding the
S/B for issue of LEO
Net weight, Gross weight, Bank A/C No, Authorized Dealer Code, Airline Code,
AWB No, RBI Code, AR4 details, Quota certificate Nos.
8.41. Change Rotation number
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This option is used for changing the rotation number of vessel in the Sea Customs.
8.42. Cancel unreplied Queries
This option is used for cancellation unreplied queries by CHA/ Exporter for a
S/B.
8.43. PREVENTIVE OFFICER
The role of Preventive Officer (PO) is valid in Sea Port, ICDs, and CFS s only. In Air
Cargo, there is no provision for such role in ICES. S/B after LEO are marked to PO,
who is responsible for supervision of stuffing operation.
On login the PO will get the following Menu:
8.43.1.
Preventive Officer Report
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The CHA/shipping Agent will approach PO at the time of stuffing. The PO will select
the S/Bs and enter the following parameters after stuffing and sealing the containers.
This is valid for FCL and LCL containers. The parameters to be entered by PO are:
Voyage No., Vessel Name, Shipping Line Code, Container Particulars, Container
No., Size, Excise seal No (if factory stuffed), date, customs seal No., date
(System date) and No of packages.
The system will match the No of packages stuffed with no of packages declared at
the time of goods registration. If the packages stuffed are less, system will prompt for
entry of packages Nos.not stuffed (back to town). The SB is marked to AC (Export)
for amendment. If the No. of packages match, the SB is put to EGM queue or the
sample queue if the sample are drawn at examination stage.
8.43.2.
Print out of short shipment
In case of short shipment, back to town report is generated by the system. The
report contains the following;
S/B No., IEC, Exporter name & Address, Packages No. not stuffed etc.
8.43.3.
Container No. Amendment
This option is used for amending the container Nos of a S/B, which may have been
entered wrongly during goods registration
8.43.4.
EP copy print
This option is used for printing EP copy of the S/B.
8.43.5.
Sailing report
Sailing report entry form as follows
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This option is used for entering rotation number and date, vessel name, entry
outward date etc. One sailing report enter there is no amendment of S/B is possible.
8.43.6.
Rotation number amendment
This option is used for amending the rotation number enters in the sailing report.
8.43.7.
Grant of entry out ward/ port clearance
This option is used for entering date and time of the vessel leave the port.
8.44. ICES IMPORTS
8.44.1.
Registration of Airlines & Consol Agents
Registration of Airlines / Consol agents / Any other person(s)
All Airlines and such other persons who issue delivery orders to the importers
and on the basis of which goods are permitted to be delivered to the importers,
are required to be registered in the EDI-System to facilitate filing of IGMs
electronically.
The business category codes assigned to-Airlines = AL and Consol Agents
= CN.
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The designated officer who is assigned the role of registration, shall before
entry of details in the system satisfy himself about the correctness of the
information furnished by the applicant (Annexure5) and observe all other orders
and procedures prescribed from time to time in this behalf.
The Airlines have already been assigned Airline Codes for filing of IGMs. The
same Codes shall be used for registration of Airlines and shall be used for
activities of filing of IGMs etc.
The Consol Agents and Any other person(s) shall be assigned a registration
number by the system.
The registration number shall have three components:
10 digit
2 digit business category code –
4 digit Port Code like-
INCOME TAX PAN
CN
DEL4, PPG6, COK1 …
The registration No shall look like – AAACK8719P CN DEL4
This Registration No. should be used for filing of IGMs by Consol Agents or
Any other person.
After registration, the amendment of any of the details can be made by the
designated officer.
8.44.2.
Filing of Import Manifest (before arrival of Aircraft)
Filing of IGM by Airlines
The Airline shall file IGM against their Master Airway bills, in the same manner as
they are filing at present.
Now, since IGM shall be filed before arrival of an aircraft, IGM No. would not be
available at this stage.
The IGM shall be filed on the basis of: Flt No, Flt date & Flt time.
In case the IGM is filed after the arrival of aircraft, the same shall be filed
indicating IGM No. as assigned to the aircraft.
The Format for entry of IGM at service centre is prescribed in Annexure-6.
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Flat file Format for filing of IGM by Airlines through ICEGATE is annexed as
Annexure – 8.
On submission of the IGM at service center the system will generate a Job No.
which shall be used for further reference till the final IGM No. is entered against a
Job. No.
In the case of filing of IGM through ICEGATE, the Flt No. & Flt date shall be used
for further reference.
8.44.3.
Filing of Consol Manifest by Consol Agents / Any other person
A Consol Agent or Any other person on whose „delivery order‟ the goods shall be
permitted to be cleared to the importer shall file manifest in respect of
Consolidated Cargo.
The Format for filing of Consolidated Cargo through service center is prescribed
in Annexure-7 and Flat file format for filing through ICEGATE is specified in
Annexure-8.
Consolidated cargo manifest shall also be filed under ICES prior to arrival of an
aircraft and is independent of Airlines‟ manifest.
If the consol manifest is filed after arrival of the aircraft, the same shall be filed
with IGM No as assigned to the aircraft.
When the consol manifest is filed through service center, the procedure of
checklist and submission will be followed.
On submission a Job No. will be assigned by the system which shall be used for
further references.
The total No of packages in respect of all the HAWBs should not be more than
total No of packages against the respective MAWBs in the Consol Manifest.
However, when the total No. of packages against a MAWB is more than the sum
of total No. of packages against all the related HAWBs, the Consol Manifest
would be accepted by the system and addition of another HAWB or amendment
of No. of packages would be allowed against one or more HAWB or reduction of
No. of packages against MAWB would be allowed by the system by following
amendment procedure.
327
8.44.4.
Entry of IGM No against a prior IGM (Air)
The IGM Nos shall be assigned to an aircraft
At the time of obtaining unloading permission, the representative of Airlines shall
produce document of assigning to the IFO.
At the time of giving unloading permission the IFO shall enter in the system, the
IGM NO assigned to the aircraft against the prior IGM Job. No / Flt No and Flt
date
8.44.5.
Integration of Airlines Master IGM and Consol Manifest (AIR)
The Airlines Master IGM and Consol Manifests would be filed independent of
each other by different entities.
Both the manifests would be integrated with each other, by the system
automatically, on the basis of Master Airway Bills, which is the common factor in
both the manifests.
Where the details of Master IGM matches with the corresponding Master Airway
bill in the Consol Manifest, such IGM lines would get integrated with each other.
Where No. of packages in the Master IGM against a Master Airway bill, are more
than the total No. of packages in the Consol IGM against respective Master
Airway bill, such lines would be put in the error queue.
Either the Master IGM should be amended or the Consol manifest, which ever is
incorrect.
On correction of the number of total packages the Manifest would get regularised.
Where the No. of packages in the Master IGM against a Master airway bill are
less than the total No. of packages in the Consol manifest against the respective
Master Airway bill, the system will assume that remaining packages would arrive
by another flight.
When the remaining packages arrive and Master IGM is filed
the Consol
Manifest against the previous Master IGM would need to be amended and
another Consol Manifest would have to be filed corresponding to the later Master
IGM.
328
Where short landing has occurred, the system would wait for another IGM against
another flight, in respect of the short landed packages related Master and House
Airway bills.
On receipt of Master IGM in respect of short landed packages, the respective
Consol Agent shall file Consol Manifest for the packages landed subsequently.
Where excess landing has taken place, the system would wait for amendment of
Master as well as Consol Manifest in respect of such excess packages.
Where some of the packages have landed without any labels and remained un
connected to any particular Airway bill, as and when such packages are labeled
with a Master Airway bill and a House Airway bill, the same shall be co-related to
the respective IGM lines of the same flight, if such Airway bills appear in the IGM
of same flight. by the system.
When no such Airway bills exist in the IGM of same flight, the IGM shall be
amended to incorporate such Airway bills in the IGM of the flight by which these
unconnected packages landed.
Where two or more Consol Manifests have been filed against the same Master
Airway Bill No in respect of one or more House Airway bill Nos, it would not be
possible for the system to automatically, co-relate the different Master IGMs in
respect of same Master airway bill.
The Consol Agent/person who filed the Consol Manifest shall approach the
designated officer for entry of appropriate IGM No against respective Consol
Manifest.
8.44.6.
Entry of Segregation Report (Air)
The details of the segregation report, prepared jointly by custodian, Airline and IFO in
respect cargo landed from the aircraft, shall be entered in the system by the IFO against
respective IGM No based on the parameters: Flt No., Flt date/time, IGM No/ year, date &
time of starting of segregation and date, time of completion of segregation report.
Following detail from the segregation report shall be entered in the system:
1.
Total Number of packages manifested
2.
Total number of packages received
3.
Number of packages short landed
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4.
Number of packages excess landed
5.
Total number of packages for delivery at the port
6.
Number of packages for transshipment
7.
Number packages for airlines stores
8.
Number of packages for diplomatic mails
9.
Number of packages for valuables
10. Number of packages for perishables/delivery on KBE
11. Number of packages landed in damaged condition
Details short landing
MAWB No.
HAWB No.
Number of packages Manifested
Number of packages arrived
Details of excess landing
MAWB No.
HAWB No.
Number of packages manifested
Number of packages landed
Number of packages without any label.
Details of damaged cargo
MAWB No.
HAWB No.
Package No.
Marked weight
Actual weight
The Segregation Report would be very important information, in regularization and
correction/amendment of IGM
The IFO without delay should correctly enter the same in the system.
330
8.44.7.
Amendments/corrections in the Master/Consol Manifest. (Air)
The data entry of amendments shall be made from Service Centre.
The amendment requests will be put to the queue of the designated officer for
approving amendments in the system.
The designated officer shall ensure correctness of the information before
approving amendment in the system.
Where the amendment is sought before arrival of the flight, no approval from
the designated officer would be required.
However, in absence of an IGM No against a Job No., any amendment has
been carried out, as if, it is before arrival of the flight but later, if it is found that
the flight arrival time was prior to the amendments such an amendment would
require approval by the designated officer.
In a Consol Manifest if, a Master Airway bill No. is deleted all related House
Airway bill details also would get automatically deleted.
When a House Airway bill No. is deleted all other details against that HAWB
would be automatically deleted. Minimum one House Airway bill details
should remain existing in a Consol Manifest.
When all HAWBs are deleted whole Consol Manifest in respect of that MAWB
would get deleted.
8.44.8.
Late filing of Master/ Consol Manifests.(Air)
At the time of submission of Master or the Consol Manifest as the case may
be, the system will keep a record of the time of filing of Manifest and arrival of
related Aircraft.
Details of such late Manifests shall be put in the queue of the designated
officer, who shall enter the amount of penalty along with date of payments
against each of the late IGMs.
The penalty shall be paid against a manual Challan in the beginning. After
some time system will generate the Challan.
331
Any amendment, in the IGMs whether Master or Consol, carried after arrival
of aircraft shall also be taken as late filing of manifest to the extent of
amendment, therefore, amount of penalty shall be entered at the time of
approving amendments.
The system shall accept „0‟ amount when penalty has not been imposed
8.44.9.
Filing of Import Manifest for Transshipped Cargo (Air)
The IGM in respect of the transshipped cargo shall also be filed at the place
final destination by the Airlines who transported the goods on the basis of the
Master Airway bill, which is used for transportation of the goods to the final
destination.
In case the transshipped cargo is a consolidated cargo, the consol manifest
shall be filed by the Consol Agent on the basis of Master Airway bill used by
the Carriers for transporting the goods to final destination and the House
Airway bill against which delivery order is issued.
The IGM No shall be obtained by the Airlines, at the final destination, in
whose aircraft the goods have been transported to the final destination, in the
same manner as allotted to international carriers
A delivery order, issued by an unregistered Consol Agent/persons and who
has not file the related Manifest, shall not be honored for clearance of goods.
8.44.10.
Filing of IGM by shipping lines/Agents (Sea)
The Shipping line/agent shall file IGM against their Master Bills of Lading.
The IGM shall be filed only prior to arrival of vessel
The IGM line numbers would be same as indicated by the Carriers.
The IGM line number should be a numerical number without any character.
It should be ensure that same numerical number is not repeated.
In such a situation the second line with same number would be rejected.
The details in respect of „Sub-line number, House B/L No & House B/L date‟
should be left blank.
Format of IGM Message is shown as Annexure 10
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8.44.11.
Filing of Consol Manifest by Consol Agents / Any other person (Sea)
Manifest in respect of Consolidated Cargo shall be filed by a Consol Agent or
Any other person on whose „delivery order‟ the goods shall be permitted to be
cleared to the importer.
The Format for filing of Consolidated Cargo through service center is
prescribed in Annexure-9
Consolidated cargo manifest shall also be filed under ICES prior to arrival of a
vessel and is independent of shipping lines‟ manifest.
The Consol manifest shall be filed for sub-lines in respect of House B/L
against a Shipping lines‟ Master IGM line Number.
Sub-lines shall also be numerical numbers without any character and should
not be duplicated.
Duplicate sub-line numbers would be rejected. Consol manifest can be filed
independently even before filing of a Master manifest.
If the consol manifest is filed after filing of Master IGM, the IGM No allotted to
the vessel shall be indicated at the time of filing of such Consol manifest.
When the consol manifest is filed through service center, the procedure of
checklist and submission will be followed.
On submission a Job No. will be assigned by the system which shall be used
for further references
The Format for filing of Consol manifest at service centre is Annexed as
Annexure 9
8.44.12.
Integration of shipping line/Agents Master IGM and Consol Manifest
(Sea)
The Main Carriers‟ Master IGM and Consol Manifests would be filed
independent of each other by different entities.
Both the manifests would be integrated with each other, by the system
automatically, on the basis of:
333
Vessel Code; Voyage No & Master IGM Line Number, which are common,
factor in both the manifests.
The Vessel Code, Voyage No and the Master IGM Line Number are very
important factors for integration of Consol Manifest with Master IGM.
Therefore, these parameters should not be incorrect.
Any mismatch between the Vessel Code & Voyage No. in the Consol &
Master Manifests would result in to either integration of Consol manifest with
wrong vessel‟s IGM or will remain hanging.
8.44.13. On submission of Master IGM and the Consol IGM:
(a) Where the details of Master IGM match with corresponding Consol Manifest,
such IGM lines would get integrated with each other.
(b) Where No. of packages against line number of the Master IGM are less than the
sum of packages in respect of all sub-lines of Consol manifest, such lines would
be put in the error queue. Either the Master IGM or the Consol manifest,
whichever is incorrect would be amended. On correction of the number of total
packages the Manifest would get regularised.
(c) Where the No. of packages against a line number of the Master IGM are greater
than the sum of packages in respect of all sub-lines of Consol manifest, such
lines would be put in the error queue. Either the No. of packages would be
corrected in the respective manifest or new sub-lines would be added in the
consol manifest for differential number of packages.
(d) Similarly, in the case of containerized cargo, where the total number of
containers and/ or the container numbers mismatch in Master and Consol
Manifest, the IGM would be put to error queue for amendment. On correction of
errors the Master & Consol manifests would get regularised.
8.44.14.
Amendments/corrections in the Master/Consol Manifest.
The data entry of amendments shall be made from service center.
The amendment requests will be put to the queue of the designated officer for
approving amendments in the system.
The designated officer shall ensure correctness of the information before approving
amendment in the system.
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Where the amendment is to be made before arrival of vessel no approval from the
designated officer would be required.
However, in the absence of Entry Inwards, any amendment carried out, as if it is
before arrival of the vessel but later on, if it is found that the arrival time of vessel
was prior to the amendments, such an amendment would require approval by the
designated officer.
In case any Bill of Entry has been filed against a line/sub-line number of the
manifest, any amendment made in manifest would also affect the respective B/E;
therefore, the corresponding B/E would also need to be amended for the related
details.
The Shipping lines or the Consol Agents as the case may be should inform the
respective importers to get their Bs/E also amended.
8.44.15.
Late filing of Master/ Consol Manifests.
At the time of submission of Master or the Consol Manifest as the case may be, the
system will keep a record of the time of filing of Manifest and Entry Inward in respect
of a vessel.
Details of such late Manifests shall be put in the queue of the designated officer,
who shall enter the amount of penalty along with date of payments against each of
the late IGMs.
The penalty shall be paid against a manual Challan in the beginning.
Any amendment, in the IGMs whether Master or Consol, carried after Entry Inward
of vessel shall also be taken as late filing of manifest to the extent of amendment,
therefore, amount of penalty shall be entered at the time of approving amendments.
The system shall accept „0‟ amount when penalty has not been imposed.
A delivery order, issued by an unregistered Consol Agent/persons and who has not
filed the related Manifest, shall not be honored for clearance of goods.
All the Consol Agents/persons shall indicate their Registration No. on the delivery
orders which shall be verified by Custodians at the time of delivery.
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8.45. Processing of BE‘s through ICES/I
Registration of Custom House Agent
All licensed CHA‟s have to be registered in the system to be able to file documents in
the system both online through ICEGATE as well through Service Centre.
Submission of IGM
IGM‟S can be filed at the Service Center as well through the ICEGATE directly. IGM
can be file both prior to Entry Inwards of Vessel or Arrival of Aircraft as well as after
arrival of vessel or Aircraft. The concerned Assistant Commissioner on the written
request of the Steamer Agent or Airlines shall permit amendment of IGM, as the
case maybe.
Filing of Bill of Entry
CHA/Importer has to file the declaration in the prescribed format to Service
Center or through ICEGATE.
A checklist will be generated by the system, which should be checked by the
CHA/Importer and shall be submitted in the System after making suitable
corrections, if any.
On successful submission of the correct BE Declaration, a BE No is
generated automatically.
A Bill of Entry maybe filed on prior entry basis or Advance BE filed before 30
days of arrival of vessel or Aircraft.
The BE is then allotted to Appraising Group on the basis of value of items for
appraisal as per queue on first-come first-serve basis by the system
automatically.
Appraising
AO has no choice in selection of BE.
The first BE in the queue will be put for appraisal automatically
The Appraiser who logins in first will get the first BE on screen
Alert messages against the BE are flashed on screen.
AO can raise a Query to the Importer /CHA after approval by the concerned
Assistant Commissioner.
Approval of Amendment of BE
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First Check maybe ordered subject to approval by Assistant Commissioner
and BE forwarded to Shed Appraiser for examination.
AO can change CTH, CETH, Notification No, enter penalty, fine, load at
invoice level, item level, BE level by changing unit price.
Select standard examination order, record Examination Order if the
standardized orders are to be modified, enter Instructions and Departmental
comments
AO may seek the advice of AC online by forwarding the BE with comments.
BE after appraisal is forwarded to Auditor for audit of BE. Where the AV
exceeds Rs.1, 00,000/- the BE will have to be passed by the Assistant
Commissioner.
AO can order for execution of Bond by marking the assessment provisional,
pending test, production of documents, Valuation details etc
The BE‟s returned from Shed after first check have to be retrieved by
choosing the option in the Appraiser‟s Main Menu.
BEs can be de-activated or activated
Audit
The Appraised BE from AO is sent to Audit.
Auditor„s menu has 10 options.
The first option, Audit of BE maybe used for Auditing of bills and passing the
same.
Option 2,Audit System Appraised BE is used for Audit of System Appraised
BE.
Option 3, List of BE‟s allocated shows the list of BE‟s allocated to that Officer.
Option 4, Enquiry is used for viewing BE details using various approaches.
Option 5, Bond Management helps the auditor view Bond details of the BE.
Option 6, allows the user to change his Unix password to maintain System
Security.
Option 7, allows the user to change the Oracle password to maintain System
Security
Option 8, facilitates viewing of preformatted Reports on the screen.
Option 9, facilitates printing of preformatted reports directly.
337
Option 10, Miscellaneous options are as the same as in Assessment
Appraiser‟s Main Menu. This allows various viewing options of BE details for
the user.
8.46. First Check Processing
First Check can be requested by the Importer or can be given AO subject to
approval of the same by the concerned AC.
All first check BE‟s are marked to AC irrespective of their Assessable Value.
AC may accept or reject the AO‟S decision for first Check.
BE will be marked to shed and marked back to AO (Assessment) after the
First Check is entered.
Prior Entry BE
A Prior Entry BE maybe filed 30 days before the arrival of the conveyance.
The prior BE maybe filed in the usual method of filing a BE.
The BE shall be marked Prior in the Status Field of the BE.
After appraisal one copy of the BE shall be generated along with three copies
of Challan for duty payment.
On filing of IGM the BE shall be regularised in the System.
If there is any change in rate of duty after filing of BE as on date of Entry
inwards the BE and shall be put up to the Appraiser for re-appraisal and
further normal procedure adopted.
8.47. Clearance of Import Cargo under Kaccha BE (KBE)
8.47.1.
Filing of KBE
KBE shall be filed as “Prior Entry BE” in the absence of IGM in the System.
The Data entry shall be done at the Service Center on a 24 Hours Basis
At the time of filing the BE declaration in column Kaccha Bill of Entry option „Y‟
should be chosen
All other details and procedures shall be as in the case of a normal BE
Appraisement of KBE
All KBEs shall be System Appraised on the basis of declaration made by the
Importer.
338
A Challan for payment of Duty shall be generated along with the assessed
copy of Kaccha Bill of Entry.
Duty shall be remitted at the designated Bank as per usual practice.
Bank will generate message for receipt of Duty
Out-of-charge cannot be given until Message from Bank acknowledging duty
payment is received in the System.
Examination of Cargo
IFO shall enter the IGM number, date and year along with the Inward date
(Vessel arrival date/Flight date) in the KBE, as provided by the importer.
The following Documents should be presented to IFO for examination of
cargo
(a)
Airway bill
(b)
Invoice and Packing list
(c)
Delivery Order, clearly mentioning the IGM no., Flight No. and date
(d)
Other required documents such as Certificate / NOC from the Port
Health Officer / Assistant Drug Controller / Plant Quarantine Officer,
etc. wherever required.
IFO shall be the proper Officer for examination of Cargo covered under
Kaccha BE.
The IFO shall check the AWB No. and Date, HAWB No. and Date from the
hard copy of the IGM presented by the Carrier.
He shall scrutinize the documents submitted by the importer / CHA and if the
details are correct, shall update the field of IGM No. / Year and Inward Date
(Flight Date) in the KBE on screen and enter the examination report.
8.47.2.
Out-of-charge of KBE
Superintendent in charge of the Shed has been designated as the Officer for
giving „Out-of-Charge‟ of the KBE.
Before giving Out-of-Charge‟ he shall check the correctness of declaration
and the fact that the goods imported fall under the category of goods allowed
to be cleared against a KBE.
He will verify the permission given by the Addl. / Joint Commissioner in
respect of the goods covered under the list of goods permitted to be cleared
under KBE.
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He shall also ensure that all other requirements relating to clearance of the
goods have been complied with and all necessary documents alike Original
Invoice, Copy of AWB, Copy of delivery order, Certificates, NOC from Port
Health Officer / Assistant Drug Controller / Quarantine Officer, have been
attached with the print-out of the assessed KBE.
After satisfying that all requirements have been met ,the Superintendent in–
Charge of the Shed shall give Out of Charge Order for the KBE.
Upon out of charge, Print of KBE Exchange Control Copy and Importer‟s
Copy shall be taken along with the Order of Clearance.
The Supdt shall sign both the KBE copies and hand over the same to the
CHA and retain the Assessed Copy of BE WITH original Documents that were
submitted by the Importer for obtaining Clearance along with the Customs
copy of the Order of Clearance.
All the Original Documents shall be sent to the designated Auditor in the Audit
Department.
8.47.3.
Audit of KBE
Audit of all KBEs shall be carried out on the hard copies of the KBEs of the
documents received daily fro the Superintendent Shed on Daily basis.
All KBEs Audited irrespective of the Fact correctly audited or not shall be
indicated as audited “Y”
In case of error in assessment recovery process shall be initiated manually
Option “N” shall be chosen only when the KBE has not been received in the
bundle.
Such BEs shall be traced and audited.
After completion of audit the disposal of the KBE shall be in the same manner
as in case of a normal B.E.
System Appraised BE‘s
Where the Bill of Entry falls under the norms prescribed for System Appraisal,
System shall appraise the BE, and submission, generate assessed copy of
BE with Duty Payment Challan and Examination Order or Green Channel as
the case maybe.
Duty is to be paid with the designated Bank
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Green Channel BEs are put up to AC‟s queue for approval of Green Channel.
After approval of Green Channel or otherwise the BE is put up to Appraiser/
Supdt Shed for forwarding BE to shed Auditor.
The Auditor after audit forwards the BE to Shed AO/ Supdt for Out-of-Charge.
In cases where any discrepancy is found, BE is marked to Assessing Group
for re-assessment
Second Appraisement BE
Where the Declaration of the Importer has been accepted by the AO, he shall
pass the BE giving examination order or make suitable changes using F2
Menu Options in Option 1 on his Main Menu.
After assessment by Appraiser the BE is put in Auditor‟s queue for Audit.
Where the Assessable Value is over One Lakh the BE is put in the Queue of
the AC for AC‟S approval
On completion of audit, BE (one copy of Assessed BE) with Challan (three
copies) are generated and can be obtained from Service Center.
The print of Assessed copy of BE with Challan can be taken by the
CHA/Importer from his Office if filed through ICEGATE
Duty Payment
Challan details are sent to Bank in message through the MES and vice versa.
The bank sends details of duty collected to Customs online.
CHA/Importer on receipt of Duty Payment Challan shall make the payment in
the designated Bank.
Duty paid on Manual Challan cannot be adjusted against EDI Bill.
On receipt of duty payment message, the BE shall be put Examination queue
for examination and out-of –charge.
8.48. Examination of Goods
First Check BE is put in examination queue from Group AO/AC.
The BE shall be registered in the Docks before examination.
One copy of BE is generated at the Service Center and the same has to be
submitted with required documents to the Shed Appraiser, which is then
assigned to an Examining Officer for examination.
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Inspector /EO
The Inspector/EO to whom the BE has been assigned shall register the Bill
and then enter the examination report after examination of the goods.
Forward the BE to the Shed Appraiser/ Supdt, after entering examination
report in the System and with the Examination report on Hard Copy of BE
Shed Appraiser
In the case of 1st Check, the BE shall be forwarded to Assessing Group after
entering Examination Report in the System as well as on Hard Copy of BE.
SA on receipt of Examination report on the BE shall give Out-of Charge.
On out-of-charge, System will generate two copies of BE with Examination
Report and three copies of Out-of-Charge Order. Out-of-Charge Order No
shall be assigned on BE also.
SA shall sign and handover the Importer‟s Copy and the Exchange Control
Copy of the BE to the CHA/Importer along with two copies of Out-of-Charge.
The CHA shall approach the Custodian for delivery of the goods.
Custodian shall issue Gate Pass for clearance of the goods on the basis of
Out-of – Charge Order.
The Shed Appraiser shall retain the original assessed Copy of BE along with
Original Import documents and copy of the Out- of –Charge Order.
All the BEs after Out-of Charge as retained by the Shed Appraiser should be
arranged in the order of Out-of-Charge Order No and sent to MCD/ Audit etc.
Assistant Commissioner (Shed)
The AC (shed) can reject Green Channel and order examination of cargo for
which Green Channel Clearance had given by Group AC.
AC (shed) can also approve Green Channel Clearance on request from
CHA/Importer using option “Allow Manual GC” in his Main Menu in the
System.
8.49. Systems Manager (SM)
Systems Manager is the overall in-charge of the System in an ICES location.
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Systems Manager is responsible for the following.
System Administration
Performance Monitoring
MIS Reports
System Security consideration
House Keeping Activities
Management of Directories
System Administration mainly includes creation of Unix and Oracle User–ID‟s for
Officers and other third parties engaged in designated roles in the clearance of a Bill
of Entry, Appraising Group Management such as transfer of Officers from one group
to another, change of AC/Auditor for a group etc.
Some BE related activities are namely cancel BE, cancellation of Out-of-Charge,
Change Priority settings, Print BE from archival Database etc, can also be performed
by Systems Manager.
Disk Space utilization, Table Sizes, User Locks etc are covered in
performance monitoring options of Systems Manager.
Systems Manager can generate various MIS Reports for day-to-day use from
the options in his menu.
Systems Manager is responsible for the upkeep of all Directories such as
CTH & CETH Notification Directory, Tariff Directory etc, through the option
Management of Directories.
Systems Manager can deny access to any identified User Role or Group of
Users/ Activity/Function if so required.
Systems Manager should keep track of maintenance of Hardware, Net
working Equipments etc and co-ordinate with all the Agencies concerned.
8.50. EXAMINER/INSPECTOR
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BE is put in Examination Queue after the AO/AC has ordered First Check on the BE
and when the Importer/ CHA has made a request for filing BE u/s 46 or on payment
of Duty under Second Appraisement of BE.
CHA/Importer shall approach SA with all original Documents for examination
of the Cargo
Register the BE in the shed
Make a request in writing for GC clearance if so requested
AC Shed alone can approve Green Channel
If approved, suitable entry shall be made by the AC and the BE forwarded to
SA for allowing OOC.
Enter the examination report after examination of the goods.
Forward the BE to Shed Appraiser/ Superintendent after entering the report
8.51. Shed Appraiser / Superintendent
BEs marked for examination, are first put on the queue of SA. The following are the
major activities of SA.
Allocating Inspectors for Examination
Giving comments on the Examination report prepared by the Inspector and
giving Out-of-Charge
Re-allocating BEs among Inspectors
On successful Login, the following Main Menu is displayed
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8.51.1.
Open BE for Out-of –Charge or for clarification
Enter the BE No to retrieve the same for further action
On selection of BE, System displays the Examination Order given by
Group/System (in the case of System Appraised BE) in a pop-up window.
System also displays Exam Instruction if any which require compliance by
Shed Appraiser
Press <F4> to close window.
The main Screen also displays the following details
At the top of the screen the previous section from which the BE was sent to
SA is displayed in the „from‟ column
Possible sections are – Audit, AC, Bank, AC- shed, and Inspector etc
Exam Status
This indicates the status of the BE, whether First Check or Second Check
Green Channel
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This shows the status of the Green Channel recommendation of the
Group/Shed AC
Further Details on individual aspects of BE can be seen through F2 Menu Options
Comments
Viewing Departmental comments and Adding further comments
Comments on rep
For entering comments on examination report entered by
Examiner
View - Viewing of BE details like Master, Invoice, Items, and Examination
report, Instructions, Declared and appraised Value etc. Drop Menu for option
View is shown below
he Appraiser before out-of-charge shall compare details of items in BE with
the related invoice, no mismatch or discrepancy shall exist.
O/C- For giving Out –of-charge for BE
Next BE - Next BE can be selected or BE forwarded to another section
8.51.2.
List BEs Allocated
The list of BEs allocated to the officer for Examination/clarification is displayed.
8.51.3.
Recall BE from Inspector‘s Queue for manual GC BEs
This option is used to recall BEs, which have been allowed Green Channel by AC
(Shed) at later stage.
8.51.4.
Enquiry
This option is used to view BE details with various options and combinations.
Document Status
This option enables viewing status of a particular Bill of Entry
Enquiry by Airway Bill No/Bill of Lading No
Displays the details of the BE covered by a AWB/BL
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Enquiry by CHA No
Displays the list of all BEs filed by the CHA for a period less than 120
Days
IGM Enquiry No
Sub options for search available are
Query on Submission – gives details of IGMs for a particular date
Query on IGM Rotn No – Gives details of Specific IGM
IEC Status at Sites- is used to verify the status of a particular IEC No
8.51.5.
Bond Management
This option is used to view the Bond/BG details against a BE.
System warns against non-production of Bond when it is mandatory.
8.51.6.
Change Password (Unix)
Allows the user to change his Password. Users should change password to maintain
system security
8.51.7.
Change Password (Oracle)
Allows the user to change his Oracle Password Users should change password to
maintain system security
8.51.8.
Miscellaneous
Various sub-menu options are available for retrieving BE details.
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After Out-of –Charge in the System the Shed appraiser shall retain th Original
Assessed Copy of the BE ,Invoice ,Challan, one copy of Out-of-Charge Order or
such other documents that are necessary
8.52.
Assistant Commissioner (Shed)
On successful login the following main menu is displayed on the screen Using
up/down arrows move the cursor to the desired option and press <ENTER>.The
following screen shall be displayed.
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8.52.1.
Open BE for out of charge or for clarification
F2 Menu options are available for various activities like replying to query raised by
SA and Inspector, enter comments on report etc.
List of BEs Allocated
Lists B/E allocated to the officer as per queue.
These are for approval of Green Channel allowed by Group
Allow Manual GC
Using this option Manual Green Channel requests maybe allowed, where Group AC
has not already rejected the Green Channel request
Enquiry
Retrieve BE details in view mode using various options.
Various sub menu options are available for retrieval of BE Details
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Document Status
This option enables viewing status of a particular Bill of Entry
Enquiry by Airway Bill No/Bill of Lading No
Displays the details of the BE covered by a AWB/BL
Enquiry by CHA No
Displays the list of all BEs filed by the CHA for a period less than 120
Days
Enquiry by Res/I User Job No
Details/Status of the BE filed by a particular RES user can be obtained
by giving the Job No
IGM Enquiry No
Sub options for search available are
Query on Submission – gives details of IGMs for a particular date
Query on IGM Rotn No – Gives details of Specific IGM
IEC Status at Sites- is used to verify the status of a particular IEC No
8.52.2.
Change Password (UNIX)
Change the UNIX Password regularly using this option
8.52.3.
Change Password (Oracle)
Change Oracle Password regularly using this option
Reports Screen
Using various sub-options different reports can be generated for viewing the same
on screen.
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Reports Print
Using various sub-options different reports can be printed directly.
Miscellaneous
Various sub menu options available in this option are listed below
Be Movement
View Be
View Be From History
Past Precedents-Online
View Amendments
Cancellation Of OOC (Option With SM)
Documents Processed Officer wise
No BEs To Be Activated By Appraiser
BEs Submitted- By An Importer (Code-Wise)
BEs Submitted By An Importer (Name-Wise)
BE Movement History
List Manual GC Clearance
BE Reprint At Shed (OOC Copies)
Previous Menu
8.53. IMPORT FREIGHT OFFICER (Air)
The Import Freight Officer (Air) shall be the Designated Officer for entering the
following details.
1. Examination and Entry of Examination Report for KBE
2. Entry of IGM Number for prior IGMs
3. Entry of Segregation Report
Other options on the Main Menu are all view screen options
On successful login into the system the following display shall appear on the
IFO screen. He may choose options for entering the Data as required.
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8.53.1.
Kaccha Bill of Entry
Choosing Option1 from Main Menu
IFO shall be the Proper Officer for Examination of Goods covered under KBE
IFO shall enter the IGM number, date and year along with the Inward date
(Flight date) in the KBE, as provided by the importer.
The following Documents should be presented to IFO for examination of
cargo along with assessed copy of BE and Duty paid Challan, if any.
(e)
Airway bill
(f)
Invoice and Packing list
(g)
Delivery Order, clearly mentioning the IGM no., Flight No. and date
(h)
Other required documents such as Certificate / NOC from the Port
Health Officer / Assistant Drug Controller / Plant Quarantine Officer,
etc. wherever required.
IFO shall conduct examination of Cargo covered under Kaccha BE.
The IFO shall check the AWB No. and Date, HAWB No. and Date from the
hard copy of the IGM presented by the Carrier.
He shall scrutinize the documents submitted by the importer / CHA and if the details
are correct, shall update the field of IGM No. / Year and Inward Date (Flight Date) in
the KBE on screen and enter the examination report.
8.53.2.
Entry of IGM NO:
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Option 2 of the Main Menu
In the case of the filing of IGM before arrival of Air craft the IFO shall enter the Flt
No, Flt Date and Time of arrival of the Aircaraft in the System
8.53.3.
Entry of Segregation Report
Option 3 of the Main Menu
The details of the segregation report, prepared jointly by custodian, Airline and IFO in
respect cargo landed from the aircraft, shall be entered in the system by the IFO against
respective IGM No based on the parameters: Flt No., Flt date/time, IGM No/ year, date
& time of starting of segregation and date & time of completion of segregation report.
Following detail from the segregation report shall be entered in the system:
1. Total Number of packages manifested
2. Total number of packages received
3. Number of packages short landed
4. Number of packages excess landed
5. Total number of packages for delivery at the port
6. Number of packages for transshipment
7. Number packages for airlines stores
8. Number of packages for diplomatic mails
9. Number of packages for valuables
10.Number of packages for perishables/delivery on KBE
8.Number of packages landed in damaged condition
Details of short landing
MAWB No.
HAWB No.
Number of packages Manifested
Number of packages arrived
Details of excess landing
MAWB No.
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HAWB No.
Number of packages manifested
Number of packages landed
Number of packages without any label.
Details of damaged cargo
MAWB No.
HAWB No.
Package No.
Marked weight
Actual weight
The Segregation Report would be very important information, in regularization
and correction/amendment of IGM
The IFO without delay should correctly enter the same in the system.
8.54.
GATE OFFICER
The Gate officer has the role of entry of details at the time of delivery of
goods from the gate of the Shed.
After entry of details the Gate Officer shall retain the gate copy of the
Order of Clearance issued by the Appraiser / Superintendent the time of
out of charge.
8.55.
RISK MANAGEMENT SYSTEM
The Risk Management System (RMS) application is a sophisticated software system
developed for Central Board of Excise and Customs (CBEC).
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RMS is the application that has been designed keeping the goals of CBEC in mind.
The RMS application aims at detecting fraudulent shipments, ensuring that Customs
interventions are focused on high-risk transactions. RMS enables the application of
management policies, procedures and practices to the tasks of identifying, analyzing,
assessing, treating and monitoring risks.
The overall approach of RMS is to trust compliant clients and focus resources on
non-compliant clients and transactions involving higher risks. The Risk Management
Programme has the following essential characteristics:
It is nationally focused and consistent.
It is flexible to address both national as well as regional issues.
It has the capability to address Strategic and Tactical dimensions of risk.
It is ensuring Customs responses calibrated to the client compliance levels.
It has guarantee accountability, transparency, and speed.
It supports the fulfillment of organizational mandate / goals.
It supports other programs such as Post clearance Audit, Client assistance,
education, and any other initiatives that the department may launch to meet
the emerging challenges.
It is scalable to meet future needs.
It ensures feedback for regular review and monitoring.
The aspect of feedback and regular review and monitoring and a mechanism for
compliance measurement is also incorporated in the programme.
8.56. Objectives of the RMS Application
The RMS application is developed keeping the following objectives in mind:
Facilitating the importers and exporters by allowing fast clearance of goods.
Facilitating compliant clients having impeccable track records by allowing
green channel entries for importers and exporters.
Uniformly applying Customs rules and regulations throughout the country
through system scrutiny.
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Reorganizing the work procedure by simplifying them to suit international
standards.
Controlling management and collection of Customs Duties quickly and
actively.
Improving and developing quality information for the use by senior
management.
Controlling economic frauds and duty evasions by using advanced system
tools and effective redeployment of manpower.
Keeping a close watch on the movement of contrabands and protecting
national economy from unfair trade practices.
Developing a flexible and robust system capable of meeting the changing
needs of the department.
Improving and developing quality information, through report, for the use by
senior management.
Controlling economic frauds and duty evasions by using this application.
8.57. Scope of the Application
Imports
Exports
Transit goods
Temporary admissions
The diverse requirements at airports, air cargos, seaports and territorial
borders.
8.58. Overview of the RMS Application
The RMS application is a self-assessment portal that has interfaces with ICES
systems, which have been already implemented at CBEC. The RMS portal is used to
process the Bill of Entries (BE) submitted in connection with import or export
consignments to identify the risks involved in imports or exports of the specific
goods.
An overall approach to the Risk Management is controlled through the seven
corridors.
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Figure 1: An Approach to the RMS Application
A Risk Corridor is the virtual passageway where business rules are applied to each
transaction based on the parameters related to Imports and Exports. The parameters
in context of the Imports are Importer, Supplier, Commodity (subsuming
classification, valuation and OGD dimensions), Clearing Agent, and Carrier. The
Risk Corridors for Import are:
Risk Evaluation Corridor
Target Corridor
Intervention Corridor
Facilitation Corridor
Risk Mitigation Corridor
Random Hit Corridor
Out of Charge Corridor
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The RMS portal sends Out of Charge of each BE as an output to the other
connected systems such as NIC.
Figure 2
The Out of Charge Corridor is further sent to the Risk Data Registry and then to the
Post Clearance Audit (PCA) Corridor. The types of audits that happen in the PCA
corridor are:
Transactional Audit
Strategic Audit
Types Of Transaction Audit
Random Corridor Trace
Risk Rules
Intervention
8.59. Login Procedures
Login feature is used to log on to the RMS portal. To authenticate, the user or the
administrator must enter their Username, and Password provided for their respective
user accounts, and then click the Login button. If the information entered is incorrect,
the portal will display the appropriate error message. If the information entered is
correct, then the user will be allowed to access the RMS portal according to his/her
privilege provided by the administrator.
To access the RMS application steps followed are:
1. Open the browser window and enter the RMS application URL i.e.
http://servername:port number/cbec. The Login screen of the portal appears.
2. Enter valid Login ID and Password.
3. Click Login to open the Home page of the application. On clicking the Login
button, the portal authenticates the given Login ID & Password. If the Id &
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password are valid, the Home page of the portal appears with the privileged
features enabled. If the Id & password are invalid, an error message “Invalid
Login Id/ Password” is displayed. Try the steps again with a valid Id &
password to access the application.
8.60. The RMS Procedure
With the introduction of the RMS, the practice of routine assessment, concurrent
audit and examination of almost all Bills of Entry has been discontinued and the
focus now is on quality assessment, examination and Post Clearance Audit of Bills of
Entry selected by the Risk Management System.
Bills of Entry and IGMs filed electronically into ICES through the Service Centre or
the ICEGATE will be transmitted by ICES to the RMS. The RMS will process the
data through a series of steps and produce an electronic output for the ICES. This
output will determine whether the Bill of Entry will be taken-up for action
(appraisement or examination or both) or be cleared after payment of duty and Out
of Charge directly, without any assessment and examination. Also where necessary,
RMS will provide instructions for Appraising Officer, Examining Officer or the Out-ofCharge Officer. It needs to be noted that the decisions communicated by the RMS
on the need for assessment and/or examination and the appraising and examination
instructions communicated by the RMS have to be followed by the field formations. It
is possible that in a few cases, the field formations might decide to apply a particular
treatment to the BE which is at variance with the decision received from the RMS
owing to risks which are not factored in the RMS. Such a course of action shall
however be taken only with the prior approval of the jurisdictional Commissioner of
Customs or an officer authorized by him for this purpose, who shall not be below the
rank of Additional/Joint Commissioner of Customs, and after recording the reasons
for the same. A brief remark on the reasons and the particulars of Commissioner‟s
authorization should be made by the officer examining the goods in the departmental
comments in the EDI system.
The existing system of concurrent audit has been abolished and replaced by a PostClearance Compliance Verification (Audit) function. The objective of the Post
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Clearance Verification Programme is to monitor, maintain and enhance compliance
levels, while reducing the dwell time of cargo. The RMS will select the bills of entry
for audit, after clearance of the goods, and these selected bills of entry will be
directed to the audit officers for scrutiny by the EDI system. In case any possible
short levies are noticed, the officers will issue a Consultative Letter setting out the
grounds for their view to the Importers/CHAs. This is intended to give the importers
an opportunity to voluntarily comply and pay the duty difference if they agree with the
department‟s point of view. In case there is no agreement, the formal processes of
demand notices, adjudication etc. would follow. The auditors are specifically required
to scrutinize declarations with reference to data quality and advise the
importers/CHAs suitably where the quality of their declarations is found deficient.
Such advice is expected to be followed and will be monitored by the local risk
managers. It hardly needs emphasis that compliance in all its dimensions is in the
mutual interest of the Government and the Trade and Industry and it will enable the
government of give increasing levels of facilitation.
The national management of the Risk Management System is the responsibility of
the Risk Management Division, established under the Directorate General of
Systems and Data Management. There will be a local Risk Management System
catering to the needs of the Custom Houses. The local Risk Management System
will carry out the live processing of the Bills of Entry and Import General Manifests
etc. The Commissioners of Customs are required to appoint the administrator for the
„Local Risk Management System‟ at the level of the Joint/Additional Commissioner
for assigning user privileges on the Local Risk Management System.
8.61. Accredited Clients Programme (ACP)
The “Accredited Client‟s Programme” (ACP) is a major component of the Risk
Management System (RMS). The objective of the programme is to grant assured
facilitation to importers who have demonstrated capacity and willingness to comply
with the laws Customs department is required to implement. With the implementation
of the Risk Management System, this programme replaced all existing schemes for
facilitation in the sites where RMS has been implemented.
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Importers registered by the department as ―Accredited Clients‖ under the
Accredited Clients Programme will form a separate category to which assured
facilitation would be provided. Except for a small percentage of consignments
selected on a random basis by the RMS, or cases where specific intelligence is
available or where a specifically observed pattern of non-compliance is required to
be addressed, the Accredited Clients will be allowed clearance on the basis of self
assessment i.e. as a matter of course, clearance would be allowed on the basis of
their declarations, and without examination of goods. Further, this benefit would be
available to the registered Accredited Clients at all the ports in the country where EDI
and the RMS are operational.
The importers desirous of availing the facility as “Accredited Clients” are required to
apply for registration under the scheme using the Application form prescribed for this
purpose. Importers meeting the following criteria shall be eligible under the
Accredited Clients Programme:
(i)
They should have imported goods valued at Rs Ten Crores [assessable
value] in the previous financial year; or paid more than Rs One Crore of
Customs duty in the previous financial year; or, in the case of importers
who are also Central Excise assessees, paid Central Excise Duties over
Rs. One Crore from the Personal Ledger Account in the previous
financial year.
(ii)
They should have filed at least 25 Bills of Entry in the previous financial
year in one or more Indian Customs stations.
(iii)
They should have no cases of Customs, Central Excise or Service Tax
booked against them in the previous three financial years. Cases
booked would imply that there should be at least a show cause notice,
invoking penal provisions, issued to an importer.
(iv)
They should also not have any cases booked under any of the Allied Acts
being implemented by Customs.
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(v)
The quality of the submissions made by the applicants to Customs should
be good as measured by the number of amendments made in the bills of
entry submitted by them in relation to classification of goods, valuation
and claim for exemption benefits. The number of such amendments
should not have exceeded 20% of the bills of entry during the previous
financial year.
(vi)
They should have no duty demands pending on account of non-fulfillment
of Export obligation.
(vii) They should have reliable systems of record keeping and internal controls
and their accounting systems should conform to recognized standards of
accounting. They are required to provide the necessary certificate from
their Chartered Accountants in this regard as per format given in the
Application form.
For qualifying for the ACP, the applicants will have to satisfy any one of the criteria
set out at serial number (i) and all the other criteria set out above. Further, the
accreditation would initially be valid for a period of one year and would be renewable
thereafter upon a review of the compliance record of the Accredited Client.
The Risk Management Division administers the Accredited Clients Programme.
The list of Accredited Clients will be maintained centrally in the Risk Management
System.
The importers who have been granted the status of Accredited Clients will be
required to maintain high levels of compliance. It will be closely monitored by the
Risk Management Division in co-ordination with the Commissioners of Customs and
where compliance levels fall, the importer will first be informed for improvement. In
case of persistent non compliance, the importer may be deregistered under the
Accredited Client‟s Programme.
In order to ensure that there is no misuse of the programme by imposters (persons
who assume the Accredited Client‟s name and identity), it would be mandatory for
the accredited clients under the ACP to file bills of entry using digital signatures.
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Where the Accredited Clients are filing their documents through their Custom House
Agents, they must advise their Custom House Agents to file their bills of entry using
digital signatures granted to them by the department.
Additionally, all bills of entry must be filed by Accredited Clients through the
ICEGATE facility and duty in respect of these consignments must be paid though
such Clients‟ bank account at the designated bank.
8.62.
INTELLIGENCE SUPPORT SYSTEM
The Intelligence Support system (ISS) is a tool developed by DRI. It is very useful
for development of intelligence, analysis of trends and assistance in investigations.
Presently the system is working on the basis of a database in respect of import and
export received from 30 EDI locations. The following are modules available in the
ISS:
 Import: This module gives access to all the live and consignments cleared
(Out-of-Charge). The details include importer details (name/IEC), CHA
details (Name/Code), Consignment details (Description, CTH, quantity,
model, brand name), Country of Origin, Port of shipment, Valuation details
(Assessable value with breakup of various parameters, unit price), Duty
details (aggregate duty with breakup of various duties) etc. The module also
contains details regarding clearances under various export incentive
schemes along with duty foregone. Separate retrievals for imports under
SAFTA, ISFTA and those suffering anti-dumping duty have been provided.
 Export: This module gives access to all the live consignments allowed for
export (Let Export). The details include exporter details (name/IEC), CHA
details (Name/Code), Consignment details (Description, RITC, quantity),
Country of destination, Port of destination, Valuation details (FOB value, unit
price). Details of exports under various export incentive schemes and the
363
extent of export benefit claimed by the exporter are also available. Separate
retrievals for exports under DEEC, drawback, DEPB have been provided.
 IGM: This module contains details of the Import General Manifest (IGM) filed
by shipping lines/Airlines. This includes details regarding the importer, the
consignment (description, quantity), port of loading, port of destination,
vessel/aircraft & voyage/flight details, container details, airlines/shipping line
details, bills of lading/airway bills etc.
 EGM: This module contains details of the Export General Manifest (EGM)
filed by shipping lines/Airlines. This includes details regarding the exporter,
the consignment (description, quantity), port of export, destination country,
port of destination, aircraft & flight details, container details, airlines details
etc.
 IEC: This module provides information about Importer Exporter Codes
(IECs) granted by DGFT. The information includes importer details,
addresses, category of importer etc. The information available is about IECs
registered on all India basis by DGFT and is updated on a periodic basis.
 Licenses: Information with respect of licenses issued by DGFT would be
available. This information would include License details ( License holder,
type of license – DEPB, DEEC, DFRC, details of benefit granted, validity
etc), registration details ( date of registration, duty benefit entitled), debit
details (debit by way of bill of entry or Release Advice), Release Advice
details ( RA No., Port of issue, duty entitlement).
 Non EDI data: This module is in its final stage and will be made available
on the system shortly. When introduced this module will give information in
respect of non EDI transactions effected at most of the Custom houses in
the Country.
364
The retrieval of the above data is in terms of conditional queries ie queries can be
built as per requirement of the user. As an illustration, if a user wants data for a
specified period for a particular importer importing a specific commodity whose
price is below a certain value, these conditions can be built in the query for specific
results. Online help has been provided for ease of use.
8.63
DRI PROFILING SYSTEM (DRIPS)
DRIPS is intended to be the central depository of all India Customs offence data. At
present all DRI cases detected on or after 1st April 2002 have been entered into the
database. The software allows data entry and access to all aspects of offences viz.
detection, investigation, issue of show cause notice, adjudication/settlement,
appeals, Preventive detention, rewards etc. The software can also be used to
generate various reports, DRI II/III forms. Recently the facility to generate CEIB
report from DRIPS has been added to the system. Another facility to record details
of such investigations, which are not culminating in, to cases have been
incorporated.
The access being provided to each EDI customs location will enable them to enter
data with regard to their respective location and access the same. Each location
can also access data related to other formations grouped in the following
categories:
CBEC: Consolidated Access to all India data (ie DRI & all Customs
formations)
ALL Customs: Consolidated Access to all Customs formations except DRI.
DRI HQ: Access to all India DRI data.
The access of data with regard to other formations is in form of profiles of accused,
profiles of cases booked and adhoc queries regarding different facets of the case.
Access to ISS will significantly enhance the capabilities of Customs formations in
analyzing their import/export data and to detect Commercial frauds. It will also
365
provide a powerful tool for assistance in investigations.
Access to DRIPS will
create a single window access to all India Customs offence data. However it may
be noted that effectiveness of DRIPS depends on complete, timely and error-free
data entry.
It may also be pointed out that ISS data is highly sensitive and prone to misuse
owing to nature of data. It is the responsibility of each location to ensure security of
data and monitor access. It is ensured that access to the computer on which the
access will be available be restricted. Further access may be allowed to a senior
officer who can take responsibility of managing access to ISS.
366
CHAPTER - NINE
9.
TRANSIT AND TRANSHIPMENT OF GOODS
9.1.
PRELIMINARY
The Import and Export of goods to and from our country takes place through
various Customs Ports, Customs Airports and Land Customs Stations situated along
the frontiers across the country. Every day, numerous Indian & Foreign vessels,
aircrafts and vehicles call at these customs stations for the purpose of bringing in
imported goods and taking out goods produced in India. Owing to wide ranging
factors such as available facilities, operational priorities and conveniences, trade
norms,
business
competition,
International
transportation
laws
etc.,
these
conveyances carry goods which are diversified in terms of variety, quantum and
destination, in a single journey itself.
The imported goods on board a conveyance calling at any of the Customs
station can be classified into, two broad categories 1)
Goods to be retained on board to be carried to other Indian or foreign
destination. Such goods are known as Transit goods.
2)
Goods to be unloaded at the port/airport of call. This can be further
subdivided into two categories(i)
goods unloaded to be Custom cleared at the port/airport of call, and
(ii)
goods unloaded at port of call but destined further
to some other
Indian or foreign port/airport. Such goods are known as Transhipment goods.
The provisions dealing with the Transit and Transhipment goods have been
outlined in Chapter VIII of the Customs Act, 1962.
Section 52 of the Customs Act, 1962 specifically excludes a) baggage, b) goods
imported by post and c) stores; from the purview of these provisions, which have
been covered under Chapter XI of the Act as a special provision.
9.2.
GOODS IN TRANSIT
367
Section 53 of the Customs Act, 1962, provides that goods mentioned in an
Import Report or an Import Manifest, as goods for transit in the same conveyance to
any Customs Station in India or to any place outside India, may be allowed to be so
transited without payment of duty. This Section, however, also makes it clear that
any prohibitions / restrictions in force , on the bringing into India or taking out of India
of any goods, shall apply to such goods.
9.3.
TRANSHIPMENT OF GOODS
Section 54 of the Customs Act, outlines the provisions for transhipment of
imported goods to a place in India or outside India.
Sub-clause (1) of section 54 stipulates that any person intending to Tranship
any goods, which are imported into a Customs Station, shall present a “Bill of
Transhipment” in respect of such goods to the proper officer. It also provides that, if
the goods are being transhipped under an International Treaty or bilateral agreement
between the Govt. of India and the Government of a foreign country, a “Declaration
for Transhipment” instead of a “Bill of Transhipment” shall be presented to the proper
officer.
Sub-clause (2) of the Section 54 provides that if the goods are intended to be
transhipped to a place outside India, the same may be allowed without payment of
duty but the prohibitions / restrictions on bringing into India or taking out of India of
any goods ,shall apply to such goods.
Sub-clause (3) of the Section 54 refers to the goods imported into a Customs
Station but whose transhipment is with the object of despatching the same to any
Customs Station within India. The Section stipulates that if any imported goods are
intended for Transhipment to any Customs Station in India, the proper officer may
allow the goods to be transhipped without payment of duty, if he is satisfied that the
goods are bona-fide intended for transhipment to such Customs station and subject
to the prescribed conditions for the due arrival of such goods at the customs station
to which transhipment is allowed.
368
9.4.
Conditions Of Transhipment
Section 54 of the Customs Act, 1962, is to be read with the regulations made
by the Central Government under Section 157 of the Customs Act, 1962. These
regulations are reproduced below –
9.5.
The Goods Imported (Conditions of Transhipment) Regulations, 1995
In exercise of the powers conferred by section 157, read with sub-section (3)
of section 54 and section 158 of the Customs Act, 1962-(52 of 1962), and in
supersession of the Imported Goods (Conditions of Transhipment) Regulations,
1984, the Central Board of Excise and Customs hereby makes the following
regulations, namely: 1. Short title and commencement. – (1) These regulations may be called the
Goods Imported (Conditions of Transhipment) Regulations, 1995.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Definitions. – In these regulations, unless the context otherwise, requires, (a) “Custodian” means a person approved by the Commissioner of Customs for the
purpose of section 45 of the Customs Act, 1962 (52 of 1962);
(b) “declarant” means –
(i)
the person incharge of the conveyance in which the goods are imported,
or his agent, or
(ii)
the person authourised to tranship the goods by the exporter of the goods
or by an agent acting on behalf of such exporter;
(c)
“transporter” means the Railways, the owner of the vessel, the owner of the
aircraft or, as the case may be, the owner of the motor vehicle, in which the goods
imported are transported for the purpose of transhipment.
3. Conditions governing transhipment. – Transhipment shall be allowed under
these regulations on the conditions that –
(a) the declarant makes an application to the proper officer of the Customs seeking
permission for transhipment of the goods imported;
369
(b) the goods imported are mentioned in the Import Manifest or the Import Report, as
the case may be, as for transhipment to any customs station;
(c) such transhipment is by rail, a vessel, an aircraft or a motor vehicle or by a
combination of two or more of these modes of transport:
Provided that if the goods imported are sought to be transhipped by a motor vehicle,
such transhipment shall be made only on permission in writing of the Commissioner
of Customs; and such Commissioner while permitting such transhipment shall have
regard to the following factors, namely: (i)
the nature of the goods imported to be transhipped,
(ii)
the amount of revenue involved, and
(iii)
any other factor which the Commissioner of Customs may deem relevant.
Provided further that the Commissioner of Customs shall, before refusing any such
application for permission for transhipment of goods imported by a motor vehicle,
give a reasonable opportunity of being heard to the declarant.
(d) the declarant, the transporter or, as the case may be, the custodian executes a
bond in such form with or without surety or security or with both as the
Commissioner of Customs may specify for(i)
Completion of the transhipment of the goods imported to the Customs station
of destination; or
(ii)
the transfer of the imported goods to another mode of transport during the
course of their
transhipment:
Provided that if the transhipment to the customs
station of destination is by
more than one mode of transport, the Commissioner of Customs may accept a
single bond for the transhipment by such different modes:
Provided further that the transfer from one mode of transport to another of the goods
imported during the course of their transhipment may be under the supervision of a
proper officer of Customs and at such places and subject to such conditions as may
be specified by the Commissioner of Customs at the customs station of import:
Provided also that the Commissioner of Customs may permit the execution of a
general bond in such form and with such surety or security or with both as that
Commissioner may deem, fit for the aforesaid purposes.
370
4.
Terms of the bond to be executed –
The term of the bond shall be that if the person executing the bond produces to the
proper officer, within one month or within such extended period as such officer may
allow, a certificate issued by the proper officer at the customs station of transfer as
specified in the said bond or at the customs station of destination specified in the
said bond and situated at or nearest to the place of destination that the imported
goods have been transferred or produced at the station as the case may be, the
bond shall stand discharged; but otherwise an amount equal to the value, as the
case may be, the market price of the imported goods in respect of which the said
certificate is not produced shall stand forfeited.
5.
Payment of fees –
A fee of twenty rupees in respect of each application for transhipment of the goods
imported shall be charged for all customs stations.
6.
Imported goods transferred to be sealed -
(1)
Before the goods imported are transhipped, the proper officer shall, (a) in the case of transhipment by rail, seal the containers with the Customs
Department‟s seal in the presence of an authorised representative of the
declarant, the transporter or, as the case may be, custodian;
(b) in the case of transhipment by an aircraft, a vessel or a motor vehicle,
place all small packages containing the imported goods in durable bags
and seal the bags with the Customs Department‟s seal in the presence of
an authorised representative of the declarant, the transporter or, as the
case may be, custodian.
(2)
The materials and the bags required for sealing the containers or bags under
sub-regulation (1) shall be provided by, and at the cost of the declarant or the
transporter or, as the case may be, the custodian.
[Notfn. No. 61/95-Cus(NT) dtd,. 28.09.1995, as amended by Notfn.No. 31/98 Cus
(NT) dtd. 02.06.1998.]
371
9.6.
Form of application for Permission of Tranship
To
Dated………..
The Commissioner of Customs
………………………………..
Sir,
Be
pleased
to
………………….arrived
grant
from
permission
to
……………………
tranship/re-ship
on
from
the
……………………
the
undermentioned goods for exportation per ……………….. to……………… without
payment of duty (if any).
Marks and Number
Number of description
Contents of
Remarks
of packages
of packages
Transhipment
packages
/
re-shipment
fee
of
Rs………………received.
Shroff,
Commissioner
Customs
(Reverse )
Preventive Officer Mr…………………………………….to board the
Do.
……………………………
Do.
Exporting ship
Importing ship
of
372
Commissioner
of
Customs
Marks and number
Tally
Packages received on board.
Preventive
Officer
Ship‟s Officer
Transhipment Permit
To
The Commissioner of Customs,
……………………………………
Sir,
Please permit to be transhipped from S.S…………………..arrived here on
……(Date) …..under……………..colours
goods for
Exportation
per
from ……………, the
undermentioned
S. S..………………under ……………..colours
to…………….
Mark
Number Descripti
s and s
and on
Weight
of or
Originally
Space
Space
Space for
manifested
for
for
Import
373
No.
Cashier‟
Departme
transhipment Stamps
s
nt Stamp
under
Stamps
kind of goods
quantit
for
packag
y
es
P.C.‟s
Rot
No. Line No.
1
2
3
4
5
6
7
8
Customs
House
Orders
We do declare the contents of this application to be truly stated.
Space for
Court fee
Stamps
Signature of Transhipment Agent/Importer
[ C.B.R. Notification No. 232-Cus. dated the 2nd November, 1957. ]
6.
Transhipment of Imported Goods – appointment of Customs stations
Notification No. 50-Customs (NT) dated 6th September, 1995 has been issued
appointing all the Customs ports including Inland Container Depots (ICDs) and
Customs Airports notified under section 7 of the Customs Act, 1962 as places for
transhipment of imported goods.
2.
As you are aware, in terms of sub-section (3) to section 54 of the Customs
Act, 1962, goods imported into a Customs Port or airport and mentioned in the
Indian Ports Act 1908 or the Customs airport at Bombay, Calcutta, Delhi or Madras
has to be allowed transhipment, without payment of duty, by the proper officer. This
facility of transhipment without payment of duty, is also available to imported goods
meant for any other Customs ports including an Inland Container Depot, or Customs
airports, notified by the Central Board of Excise & Customs in this behalf. Imported
374
goods can also be allowed transhipment subject to satisfaction of the proper officer
that these are bona-fide intended for transhipment.
3.
Notifications have been issued in the past appointing some of the Customs
port/airports notified under section 7 of the Customs Act, 1962 as places for
transhipment. However, these Notifications do not cover all the airport/ports including
ICDs and in respect of the airports / ports including ICDs not covered by these
notifications, the transhipment is being allowed by the proper officer, on case to case
basis.
4.
Notification No. 50/95-Cus, (NT) has now been issued with an intention to
bring uniformity in the matter of transhipment & for the sale of administrative
convenience. In terms of this notification all the Customs Port including ICDs &
customs airports notified u/s 7 of the Act, 1962 would be entitled for automatic
transhipment of imported goods.
5.
The Notifications as mentioned in annexure to this letter by which airport at
Banglore & ICDs at Pragati Maiden (New Delhi), Banglore Cantt, Anabardhi Railway
Station (AP), Coimbatore (TN), Dhanbari Kalan ( Ludhiana, Punjab), New Guwahati
(Assam), Reddipalam (AP) Amin Gaon (Guwahati, Assam) & Sanganer (Jaipur,
Rajasthan) have been declared as place for transhipment are also being rescinded.
[ Circular No. 102/95 dated 22/9/95 in F. No. 434/31/95-Cus-IV ]
9.7.
TRANSHIPMENT
OF
CONTAINERISED
IMPORTED
GOODS
–
PROCEDURE REGARDING
It is notified for information of all Steamer Agents, CHAs, importers and all
other concerned that to facilitate the transhipment of imported goods/cargo
emanating from one port to be shipped to other ports including foreign ports, the
following procedure is prescribed.
9.7.1. Transhipment of imported goods by vessel: Wherein any goods imported at Jawahar Custom House are intended for
transhipment in terms of Section 54 of the Customs Act, a application for
transhipment shall be presented to the proper officer. Such goods imported as for
375
transhipment to any place outside India are required to be duly entered in the Import
Manifest required to be filed as per provisions of Section 30, of the Customs Act,
1962. The transhipment shall be allowed subject to observance of the conditions as
prescribed in “Goods Imported Conditions of Transhipment Regulations 1995” issued
vide Notification No. 61/95-CUS NT dated 28.9.95 as amended by Section
111/18.10.95.
The application for transhipment of the imported goods can be made either by
the master of vessel/aircraft, the steamer agent, a consolidation agent, a container
agent or any other person duly authorised in this behalf by the foreign supplier or his
agent.
No goods shall be transhipped unless and until –
-
a tranship permit covering the same is produced (Appendix A)
-
The transhipment fees, if any, payable in respect thereof have been paid;
-
An order to let tranship has been obtained, in writing, on the tranship permit.
Transhipment is to be effected within two months of the final entry inward of the
importing ship. Goods not transhipped within two months or such extended period as
may be allowed by Commissioner of Customs for reasons to be recorded in writing
shall be disposed off by public auction.
The application shall be filed on 5 copies.
For transhipment to a foreign port, the above application will be presented to
the receiving clerk in the Import Department of the concerned Custom House, who,
after verification that the vessel, to which the goods are to be transhipped, has been
duly entered outward for the ports for which the goods are to be transhipped, will
make it over to the Manifest noter. The Manifest Noter shall verify that the particulars
of the goods furnished in the application correspond with those entered in the
Manifest and also that the port of destination is not included in the list of ports to
which transhipment is prohibited. The Noter shall also verify whether the articles
specified in the transhipment application are such, as are suspected to come under
any one of those, the transhipment of which is prohibited. Thereafter, he will note in
the Manifest, opposite the relative item or items the name of the vessel, to which and
the person or persons by whom the goods are being transhipped and the date of
entry and enter the total number of containers in words above his signature in all
376
copies of the application. He will also calculate and note in all copies of the
application the total amount of supervision fee recoverable at the rates prescribed
and submit the application for the Assistant Commissioner‟s permission.
The original copy shall be retained in the Import Section and the other copies
sent to Superintendent (Preventive) in the container cell who will depute an officer to
supervise the transhipment of goods after making necessary entries in a register to
be maintained for the purpose. The Preventive Officer deputed supervise the goods
will, after the shipment in whole or in part endorse the applications to show the actual
quantity of goods shipped and return the duplicate to the Import Department. The
Triplicate copy duly endorsed shall be forwarded to the Container Cell after making
for records. The quadruplicate will be given to the master of vessel for filing along
with the EGM in the case of transhipment to the Indian Port. The fifth copy will be
handed over to the applicant for his record. The procedure to be followed in such
cases will be the same as above, except that the Quadruplicate copy will be handed
over to the Master of the Vessel for Production at the Indian port of discharge along
with EGM to the proper officer.
9.7.2. Transhipment of Shut-out or Relanded Goods
When the whole of the Containerised goods/the goods, the transhipment of which
was permitted are not eventually shipped by the vessel originally designated but is
intended to shipped by another vessel, the transhipment will be permitted after
amendment of the name of the exporting vessel without any further transhipment
fee, whether the goods were supervised or not, provided the port of destination
remains the same. No amendments fee will charged for the first two such
amendments.
When any part of the goods for which a transhpment order was issued is not
eventually shipped by the original exporting vessel but is intended to be shipped by
another vessel, a fresh application should be filed for such portion of the goods. This
will be dealt with in accordance with the procedure detailed in the para above except
that after comparing the application with the first set and verifying previous payment
of transhipment fee and making necessary endorsement on both sets, it is passed
without further transhipment fee being levied.
9.7.3.
Urgent Transhipment-procedure
377
The procedure to be followed in respect of transhipment goods (the transhipment of
goods which is prohibited) from one vessel to another, on Sundays and on other
holidays and when the receiving vessel is to sail within 24 hours of arrival of the
discharging vessel, is as follows: The transhipment may be effected within the said period with permission from
Assistant/Dy. Commissioner (Imports) or Assistant/Dy. Commissioner (Preventive)
and under the supervision of the Preventive Officer on board in anticipation of
Transhipment permit and payment of the transhipment fees if any, payable in respect
thereof provided that the Steamer Agent execute a guarantee on stamp paper with a
list of cargo to be transhipped in duplicate, undertaking to complete the transhipment
formalities immediately after sailing of the vessel. Guarantee papers are retained in
the Preventive Office and a separate note sheet, with one copy of list of
transhipment cargo, will be forwarded to Preventive Officer on board to supervise the
transhipment cargo as per list and endorse the papers to Import Department
immediately.
The copies of lists received in the Import Department will be retained by the Manifest
Noter concerned until the usual transhipment applications are filed and the Export
Duty or cess or fees if any are leviable, are paid or noted in the memorandum of
fees, as the case may be.
Should there be any delay in filing the ordinary application for transhipment or in the
payment of export duty or cess or fees, as the case may be, the matter may be
reported to the Preventive Department to take action in accordance with the
undertaking.
In case of free cargo coming from Customs Port and of dutiable goods intended for
Customs Ports, urgent transhipment may freely be allowed.
No Import Licence is necessary in the case of restricted goods intended for
transhipment to other ports but brought to this port and reshipped without being
removed from the Docks.
9.7.4.
Refrigerated stores pending transhipment: In case of transhipment of refrigerated cargo or stores, carried or brought in
the Refer-Containers will be stored in the nominated area or the port. In the absence
of the facilities for keeping refer-containers in the nominated port area special
378
permission from the Asstt. Commissioner Preventive (General) is required to be
obtained for keeping such refer-containers in any CFS. Such movement will be
under Preventive escort on payment of fees as prescribed. An applicable for such
movement will be made in duplicate, one copy to be retained in the CFS on deposit
of such container and the other copy duly endorsed by the Custodian to be brought
back to the Office of ACP(G). This copy will be again taken for the purpose of
movement of said refer-container from CFS to the Docks for the purpose of loading
on the concerned vessel. Before moving of the refer-container from the CFS to the
Docks, the copy of application kept with Custodian to be duly endorsed to that effect.
9.7.5.
Transhipment of Imported containerised cargo by Rail/Road to
another Customs port in India:
Transhipment of containerised cargo from one Customs Port to another
Customs Port by road or rail is permissible under Customs Act, 1962. It will
therefore, be open to the proper officer to allow the goods to be so transhipped.
Such transhipment will be permitted as per procedure already in existence. The form
of application/transhipment permit, however, shall be as per the revised format in
Appendix A and in 5 copies handed over to the person-in-charge of the conveyance
instead of the master of vessel.
9.8.
Terms of the bond to be executed :
Bond will be executed for transhimpment to ports and destinations in India.
The Bond is not required to be executed it transhimpment is made directly to a
foreign port. The terms of the bond shall be that if the person executing the bond
produces to the proper officer, within one month or within such extended period as
such officer may allow, a certificate issued by the proper officer at the customs
station of transfer as specified in the said or other customs station of destination
specified in the said bond and situated at or nearest to the place of destination that
the imported goods have been transferred or produced at the station as the case
may be, the bond shall stand discharged; but otherwise an amount equal to the
value, or as the case may be, the market price of the imported goods in respect of
which the said certificate is not produced shall stand forfeited. The bonds executed
will be backed by such surety/security as is prescribed by the appropriate authority
from time to time.
379
9.9.
Payment of fees :
A fee of twenty rupees in respect of each application for transhipment. Of the
goods imported shall be charged for customs station.
9.10.
Imported goods transferred to be sealed :
Before the goods imported are transhipped to a destination in India, the
proper officer shallIn the case of transhipment by rail, an aircraft, a vessel or a motor
vehicle, seal the Containers with the Customs Department „ s seal in the presence of
an authorised representative of the declarant, the transporter or, as the case may be,
custodian. The requirement of sealing the container for transhipment by any mode
of conveyance in general or specifically for any particular conveyance or
consignment, may be dispensed with, by an order passed in this regard by the
appropriate
authority
under
law,
Such
authority
will
be
the
Chief
Commissioner/Commissioner of the Port, or any officer not below the rank of Addl./Jt
Commissioner specially designated for this purpose. The Agent of the importing
vessel are responsible for due transhipment under permit or all cargo manifested for
transhipment. Except where such cargo is transhipped before the vessel obtains
inward clearance, a special deposit of Rs. 1,000/- (Rupees One Thousand Only)
shall be made on account of each importing vessel and such deposit shall be
forfeited unless the name of the receiving vessel is declared by the Agents of the
importing vessel within two months from the date of entry. The said amount will be
refunded on the submission of the name of the receiving vessel within the prescribed
period. Such declaration shall be at once checked with the export general manifest
of vessel named and items found to have been duly forwarded shall be cleared from
the import manifest. Enquiry shall be made as to omissions discovered.
The master of the exporting vessel is, as per the provision of section 41 of
the Customs Act 1962 responsible for the due entry in export manifest of all
transhipped cargo ; when an amendment of the export manifest in respect of goods
found not to have been entered is permitted, such amendment will be allowed on
payment of fees as are prescribed for amendment from time to time.
No goods intended for transhipment at any port shall be landed at any place
other than the prescribed area without special permission. Permission to land
380
transhipment cargo at any place other than the prescribed area, pending shipment
may be given by the
Assistant Commissioner of Customs, incharge Preventive
service on application by the merchant or ship‟s agent.
Such permissions shall remain in force for one week only, fresh application for
every subsequent week is necessary. Each application shall state when the goods
will be landed, where they will be (whether in the special enclosures or in the within
Customs limit ) and shall be accompanied by sepoys fees as prescribed. All goods
entered for transhipment to foreign port shall be stowed entirely separate from cargo
meant for home consumption in the enclosure specially allotted for the purpose by
Port Trust.
The facility of transhipment will not be made available to arms, ammunitions,
explosives and other cargo considered as constituting a threat to the security/safety
and integrity of the Country, goods the import of which is prohibited by the EXIM
Policy in force at the time of imports and any other goods specified for this purpose
under the Customs Act, 1962 or any other law for the time being in force, by,
Notification, Circular, Order/Notice or instructions as issued by the appropriate
authority, except with the Special Permission of the Commissioner of Customs for
reasons to be recorded in writing. The transhipment will also not be allowed to any
Port/destination with regard to which any order if Prohibition has been passed by the
appropriate authority under law.
Nothing contained in this Public Notice shall adversely affect the right of the
proper officer of Customs at the Port of Import to detain, check and if necessary
deny the request for transhipment of goods entered for transhipment and to call for
any information that is considered as necessary for passing order on the request for
transhipment made by applicant.
The above procedure will also apply mutatis mutandis in the case of
transhipment of containerised imported goods between two ports.
[ Public Notice No. 86/99 dated 03.08.1999 issued by the Chief Commissioner
of Customs, Mumbai, from file no. S/V – 10 ( 79 ) CCO / 99 ]
381
APPENDIX – A
Application for permission to Tranship / Transhipment Permit
To
Date
:
……….
The Customs Commissioner,
…………….. Custom House,
Sir,
Be pleased to grant permission to tranship/re-ship from the…………..arrived
from…….
on……..the
under
mentioned
goods
for
exportations
per
to……………without payment of duty (if any)
Marks & Numbers
Description of
Weight or
Value Originally
Manifest for
Of packages
goods
Quantity
transhipment
Import General
Manifest
No……of ….(year)..
Transhipping fee to be
received.
Asstt
Commissioner
of
Customs
Transhipment/reshipment fee of Rs. …….received
Shroff/Cashier
Customs Commissioner
I/We hereby declare the contents of this application to be
truly stated
382
Signature of Exporter/importer or his authorised
agent.
(Reverse of form)
Preventive
officer to board the Exporting ship
Mr………..
Importing ship
Supdt.
of
Customs
(Prev.)
Customs Commissioner
Marks & Numbers
Packages received on
Tally
Ships Officer
Preventive Officer
Board
9.11. TRANSHIPMENT OF FREE AND UNRESTRICTED GOODS
(a)
From one Steamer to another – Permission to tranship is given on the
application of the Master or in his lieu the agents of the importing vessel,
made at the time of its Entry Inwards at the foot of the vessels‟ I.G.M. The “Let
Tranship” Order is signed by the Superintendent, Imports.
Such goods are discharged from the importing ship under boat-notes issued by the
Preventive Officer on board or in his absence, by an officer of the ship. When the
goods are shipped on board the receiving vessel, the boat notes are delivered over
to the Preventive Officer, if one is present on board such vessel, or to an officer of
383
the ship and are signed by him in acknowledgement of the goods having been duly
received on board. They are subsequently delivered by the Agents of the exporting
vessel in the M.C.D. or the Coastal Trade Establishment as the case may be, for
check with the relative E.G.M.
Boat Notes shall be issued in duplicate and their counterfoils shall also be in
duplicate.
(b)
From a Steamer or square-rigged vessel to a country craft or vice versa
or from the country craft to another- The procedure described in para is
applicable except that no transhipment fee is recovered.
9.12. Transhipment of goods by country crafts
Transhipment by country craft clearing for foreign ports via Customs Ports of
goods and ship‟s stores liable to duty shall be permitted only on the owner of the
goods executing a bond under Section 54 (3) (b) subject to the provision of Section
11 of the Customs Act. The Bond shall be cancelled on production of Landing
Certificate from the port of destination. The shippers shall be called upon to pay the
duty involved where no such evidence is produced.
9.13. Movement of goods through foreign territory
Sometimes the goods, imported or otherwise, have to move from one part of
India to another through any foreign territory.
Section 56 of the Customs Act, 1962, contains the provisions for such goods.
It stipulates that imported goods may be transported from one Land Customs Station
to another without payment of duty. It also prescribed that any goods may be
transported from one part of India to another part through any foreign territory. It
further stipulates that movement of such goods in both the cases is subject to the
conditions as may be prescribed for due arrival of such goods at the place of
destination.
The Central Government has made the following regulations in this regard –
9.14. The Transportation of Goods (Through Foreign Territory) Regulations,
1965
In exercise of the powers conferred by section 157 read with section 56 of the
Customs Act, 1962
384
(52 of 1962), the Central Board of Excise and Customs hereby makes the following
regulations, namely:1.
Short title – These regulations may be called the Transportation of Goods
(Through Foreign Territory) Regulations, 1965.
2.
Application - These regulation shall apply to goods, whether imported or
indigenous which are to be transported from one part of India to another through a
route which lies partly over the territory of a foreign country.
3.
Consignor to deliver a bill (a) Whenever any goods to which these
regulations apply are to be transported, the consignor of the goods shall make an
entry to that effect by presenting to the proper officer a bill (in duplicate) in the form
specified in Appendix A to these regulations.
4.
Permission to load goods, etc. No person-in-charge of a vessel shall permit
the loading of such goods on a conveyance unless(a) the bill relating to them after approval by, and
(b) a written permission to load the goods from,
the proper officer are received by him.
5.
Execution of bond. Before any such goods are permitted to be loaded on the
conveyance, the consignor or the person-in-charge of the vessel shall be required to
execute a bond in such form and with such surety or sufficient security as the proper
officer may be demand, binding himself in an amount not exceeding the value of the
goods.
6.
Duties of the person-in-charge of the conveyance. (1) On receipt of the
documents referred to in regulation 4, the person-in-charge of the conveyance shall
prepare as many sets of Manifest (in triplicate) in the Form specified in Appendix B
to these regulations in respect of such goods as there are customs stations to be
passed through on the route.
He shall, immediately on arrival at any customs station of delivery or re-entry, deliver
a set of the manifest along with the bill or bills relating to the goods to the proper
officer at the customs station.
385
(2)
The proper officer shall, after making the necessary check, make an
endorsement on the manifest, retain one copy of the manifest and return the other
two copies to the person-in-charge of the conveyance.
(3)
The person-in-charge of the conveyance shall retain one of the two copies for
carrier‟s record and present the other to the proper officer at the loading station.
(4)
The person-in-charge of the conveyance carrying such goods shall not leave
the Customs station until a written permission has been given by the proper officer
after checking the manifest presented to him under this regulation.
7.
Delivery of bills at the destination station. The person-in-charge of the
conveyance shall carry with him on the journey all the bills relating to the goods
delivered to him and shall immediately on arrival at any customs station, deliver to
the proper officer such of the bills as relate to the goods unloaded at that station.
8.
Clearance of goods.
Such goods, after being unloaded at any customs
station, shall not be cleared unless the proper officer gives a written permission that
all the goods so unloaded are entered in the bill or bills delivered to him under these
Regulations.
9.
Terms of the bond. The condition of the bond to be executed under
Regulation 5 shall be that if the person-in-charge of the conveyance or the consignor
produces proof within a time stipulated in the bond or such extended time as the
proper officer may permit that the good have been produced before the proper officer
at destination the bond shall be void; and if such proof be not furnished the executor
of the instrument shall be liable to pay an amount equal to the export duty leviable on
the goods and such penalty as may be adjudged or imposed by the proper officer
under the Customs Act, 1962, the Imports and Exports (Control) Act, 1947 [ now
Foreign Trade ( Development & Regulation ) Act, 1992 ]or the Foreign Exchange
Regulation Act, 1947 [ now Foreign Exchange Regulation Act, 1973 ] and shall also
be liable to forfeit the whole amount of the bond.
10.
Execution of General Bond. Notwithstanding anything contained in these
Regulations, the proper officer may permit the person-in-charge of the conveyance
or the consignor of goods to enter into a general bond in such form and with such
surety or security as the proper officer may deem fit, in respect of transport of goods
as above said to be effected from time to time.
386
[ Notfn. No. 112/65-Cus.dt.21.8.1965, as amended by 69/66Cus,dt.14.5.1966 ]
APPENDIX A
Customs Declaration Form
I/We hereby declare that the description and the value of the goods
mentioned in the Annexure here to as well as the description in the forwarding note
are true to the best of my / our knowledge and belief.
2.
In case,
a)
the packages in which they are contained or any of them differ from the
description given in the said Annexure or in the forwarding note; or
b)
the contents thereof have been wrongly described in the said Annexure
or in the forwarding note as regards the denominations, characters or
conditions according to which such goods are chargeable with duty, or
being imported or exported; or
c)
the contents of such packages or any of them have been incorrectly
mentioned in regard to sort, quality, quantity or value; or
d)
goods not mentioned in the said Annexure or in the forwarding note
have been concealed in or mixed with the articles specified therein or
have apparently been packed so as to deceive the officers of the
Customs, and such circumstances or any of them is not accounted for
to the satisfaction of the Commissioner of Customs, or in case the said
goods or any part thereof being subject to export duty or any
restrictions under the Imports and Exports (Control) Act, 1947 [ now
Foreign Trade (Development & Regulation) Act,1992 ] or the Foreign
Exchange Regulations Act, 1947 [ now Foreign Exchange Regulation
Act, 1973 ] , have been lost while in transit over any foreign territory.
I / We agree to pay on demand to the President of India the amount of duty if any,
and also such amount of penalty as may be adjudged or imposed by any competent
officers of the Government of India on me / us under the Customs Act, 1962 and / or
the Imports and Exports (Control) Act, 1947 [ now Foreign Trade ( Development &
Regulation ) Act, 1992 ] or the Foreign Exchange Regulations Act, 1947
Foreign Exchange Regulation Act, 1973 ].
[ now
387
ANNEXURE
1.
Marks on and description of packages ……………………………
2.
Description of goods …………………………………………………
3.
Weight, quantity or number ………………………………………….
4.
Value of the goods ……………………………………………………
5.
Customs station of entry ……………………………………………..
6.
Customs station of re-entry …………………………………………..
I / we hereby declare the above particulars to be true.
Signature of Consignor or his authorised
agent.
……………………………………………………..
Occupation
……………………………………….
Address
…………………………………………..
Date
……………………………………………….
Transport permitted
Officer of Customs
……………………………..( Name of Customs Station. )
APPENDIX B
Transit Manifest
Serial
……………………..
No.
388
Date
……………………………..
Name
of
Vessel
……………….
Rotation
No.
…………………..
(for calendar
year)
Sl.
Bill
No No.
.
Statio
Nam
n from e
Statio
Nam
Desc
No.
Qua
Valu
n to
e
riptio
of
ntity
e
of pkgs
Cust
Re
of o-ms
m-
and
and
and
n
Dat
Addr
Addr
good
e
e-ss
e-ss
s
of
of
n
Cons
Cons
the
ignor
i-
Bill
.
good
Sl.
s
no.
arks
show
in
gnee
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
Signature of the person in charge of the
conveyance.
9.15.
Liability of duty on transited/transhipped goods
389
Section 55 of the Customs Act, 1962, stipulates that any goods allowed to be
transited or transhipped to any Customs Stations in India shall, on their arrival at
such station, be liable to duty and shall be entered in like manner, as goods are
entered on their first importation thereof. The section also stipulates that the
provisions of the Customs Act, 1962, and any rules and regulations, shall apply is
relation to such goods.
Customs ports — Appointment for specified purposes
9.16.
Dated 21-11-1994
Notification No. 62/94-Cus. (N.T.)
In exercise of the powers conferred by clause (a) of section 7 of the Customs
Act, 1962 (52 of 1962), the Central Government hereby appoints the ports specified
in column (3) of the table below, situated in the State or, as the case may be, the
Union territory specified in the corresponding entry in column (2) of the said table, to
be Customs Port for the purposes specified in the corresponding entry in column (4)
of the said table.
Table
S.
STATE/UNION
No.
TERRITORY
(1)
(2)
1.
Andaman
PORT
PURPOSE
(3)
(4)
and Nanco-wrie (1) Unloading of imported goods
Nicobar
and the loading of export
goods or any class of such
goods.
Port-Blair (2)
Unloading of imported goods
and loading of export goods
or any class of such goods
2.
Andhra Pradesh Kakinada (1)
Unloading
of
Petroleum
390
Products
and
loading
of
export goods or any class of
such goods.
Krishna-
Unloading
of
fertilisers
patnam (2)
upto 31st August, 1995.
as
Masuli-patnam Loading of export goods or
3.
Daman and Diu
(3)
any class of such goods.
Vishaka-
Loading of export goods or
patnam (4)
any class of such goods.
Daman (1) and Unloading of imported goods
Diu
and loading of export goods
or any class of such goods.
4.
Goa
Betul (1)
Loading of mineral Ores for
export.
Marma-goa (2) Unloading of imported goods
and loading of export goods
or any class of such goods.
Panaji (3) Port "(a) Unloading of imported
coking
coal,
coke
and
limestone ;
(b) Loading of minerals and
bamboos for export."
5.
Gujarat
Bedi
(1) Unloading of imported goods
(including
and loading of export goods
Rozi-
or any class of such goods.
Jamnagar)
Bhava-nagar
Unloading of imported goods
(2)
and loading of export goods
or any class of such goods.
391
(2A) Broach
Unloading of Ethylene, Vinyl
Chloride Monomer, Propylene
and Naphtha."
Dahej (3)
"Unloading of imported goods
and loading of export goods
or any class of such goods.".
(a) goods :
crew (i) baggage;
fertilizers,
rockphosphate
and"(ii)
fertilizers,
rock
phosphate, sulphar, Ethylene,
Vinyl
chloride
Monomer,
Propylene Coal, Coke and
Neptha, and"; (iii) Gandhar
Gas Power Project Jhanor
(Bharuch) as up to June
1995.
Loading
of
the
following
export (b) goods;
crew (i) baggage;
machinery and equipment (ii)
re-exported
from
Gandhar
Gas Power Project Jhanor
(Bharuch) as upto June 1995.
(iii) Caustic soda Lye, Poly
Vinyl Chloride, Chlorine Low
Density Poly Ethylene (LDPE)
and Poly Propylene.
392
Div (4)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Gogha (5)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Jafrabad (6)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Jakhau (7)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Jodia (8)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Kandla (9)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Koka (10)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Magd-alla (11) Unloading of imported goods
and loading of export goods
or any class of such goods.
Mahuva (12)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Mandvi (13)
Unloading of imported goods
and loading of export goods
or any class of such goods.
393
Mangrol (14)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Maroli (15)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Muld-warka
unloading of imported coal,
(16)
petroleum coke and furnace
oil and loading of clinker and
cement for export
Mundra (17)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Navla-khi (18)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Okha (19)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Pind-hara (20) Unloading of imported goods
and loading of export goods
or any class of such goods.
Pipavav
(Victor)
Unloading of imported goods
(21) and loading of export goods
Port
or any class of such goods.
Porba-ndar
Unloading of imported goods
(22)
and loading of export goods
or any class of such goods.
Salaya (23)
Unloading of imported goods
and loading of export goods
394
or any class of such goods.
Sikka (24)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Talaja (25)
Unloading of imported goods
and loading of export goods
or any class of such goods.
(26) Tuna
Unloading of imported goods
and loading of export goods
or any class of such goods.
Umbergoan
Unloading of imported goods
(27)
and loading of export goods
or any class of such goods.
Vadinar (28)
"(a) Unloading of following
imported goods, namely :(i) Crude Petroleum,
(ii) Machinery and equipment
(including
Project
imported
for
imports)
Essar
Oil
Refinery Project;
(b) Loading of machinery and
equipment imported for Essar
Oil Refinery Project."
Vansi-Borsi
Unloading of imported goods
(29)
and loading of export goods
or any class of such goods.
Varavel (30)
Unloading of imported goods
and loading of export goods
395
or any class of such goods.
6.
Karnataka
Belekeri (1)
Loading
of
iron
and
manganese ore for export.
(2)
Coonda- Loading
pur (Ganguly)
of
iron
manganese
ore
and
and
ferruginous bauxite for export.
(3)
Karwar Unloading of imported goods
(including
and loading of export goods
Sardeshi-
or any class of such goods
vagad)
namely :(i)fertilizers;
(ii) food-grains;
(iii) rock-phosphate;
(iv) timber;
(v) metal scrap;
(vi)edible oils;
(vii) iron and steel (falling
under chapters 72 and 73 of
the Customs Tariff Act, 1975)
(viii)
liquid
(L.P.G.);
(ix) sugar;
(x) cotton;
(xi) minerals;
petroleum
gas
396
(xii)
raw-hides,
skins
and
leather;
(xiii) pulp of wood;
(xiv) ships, boats and floating
structure; and
(xv) ships for breaking and
unloading of crew baggage of
such ships;".
(b)
Unloading of
imported
goods and loading of export
goods or any class of such
goods
Malpe (4)
Import
(a)
of
ships
for
breaking and unloading of
crew baggage of such ships;
Loading
of
iron
and
manganese (b) ore, fish and
fish products for export.
Manga-lore (5) Unloading of imported goods
and loading of export goods
or any class of such goods.
New
Mangalore
(6) Unloading of imported goods
and loading of export goods
or any class of such goods.
Tadri (7)
Import of ships for breaking
and unloading of imported
crew baggage of such ships.
(8)Padubidri
Unloading of imported Coal.
397
7.
Kerala
Allepey (1)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Azhikkal (2)
Unloading of imported goods
and loading of export goods
or any class of such goods.
(3) C.H. Kozi- Unloading of imported goods
kode
and loading of export goods
or any class of such goods.
Cochin (4)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Minicoy
(5) Unloading of imported goods
Island
and loading of export goods
or any class of such goods.
Neen-dakara
Unloading of imported goods
(6)
and loading of export goods
or any class of such goods.
Tellichery (7)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Vazhin-jam (8) Unloading of imported goods
and loading of export goods
or any class of such goods.
8.
Maharashtra
Dabhol
Port
(1) Unloading of machinery, (a)
equipment and fuel for Dabhol
Power Project.
"(b)
Loading
of
imported
machinery and equipment for
export, imported for Dabhol
398
Project
Dharmtar (2)
Unloading of imported goods
and loading of export goods
or any class of such goods.
Nhava-Sheva
Unloading of imported goods
(3)
and loading of export goods
or any class of such goods.
Ranapar (4)
Unloading
of
following
imported goods, namely "(a) :ethylene. (i)
ethylene Di Chloride, (ii)
Vinyle Chloride monomer, (iii)
Liquefied Petroleum Gas, (iv)
Kerosene.(v)
(vi) Methanol ,
(vii) Low Sulphur Heavy Stock
(b) Loading of PVC Resin for
export.
Ratnagiri (5)
"Loading of following goods
for export, namely :all
marine
products
and
cement, (i)
tugs, fishing vessels, barges,
cargo vessels and other (ii)
vessels."
399
Redi (6)
Unloading of crew baggage
and loading of metallurgical
coke/coal
(b)
iron Loading
of
crew
baggage and ore for export.
Revd-anda (7) "(a) Unloading of imported
iron, iron ore pellets, iron ore
concentrate,
coal,
Dolomite/Limestone,
Petroleum Gas, Steel Melting
Scrap, HBI chips/Fines, Pulp,
Magnesite and sulpher; and".
"(b)
Loading
of
following
goods for export, namely: Sponge Iron, (i)
Rejects of Iron ore Chips" (ii)
.
(8) Dahanu
Unloading of duty paid coal
imported by M/s. BSES Ltd.".
(9) Jaigad
Loading of following goods for
export, namely:(i) Molasses
(ii) Bauxite Ore.
(10) Vijaydurg
Loading
of
Molasses
export"
9.
Orissa
Bahabal-pur
Unloading of fertilizers.
for
400
(1)
(2) Gopalpur
Unloading of imported goods
and loading of export goods
or any class of such goods.
fertilizers,
dead
(a)
burnt
magnesite and wheat.
Loading of ilimanite, (b) salextraction,
manganese
ilimanite,
synthetic
ore
rutile,
zircon, monozite and rice for
export.
(3) Paradeep
Unloading of imported goods
and loading of export goods
or any class of such goods.
10.
Tamilnadu
(1) Cuddalore
Unloading of imported goods
and the loading of export
goods or any class of such
goods.
(2) Ennore
Unloading of imported goods
and loading of export goods
or any class of such goods
(3) Karaikal
Unloading of imported goods
and the loading of export
goods or any class of such
goods.
(4)
Madras Unloading of imported goods
Sea Port
and the loading of export
goods or any class of such
goods.
(5) Mandapam Unloading of imported goods
401
and the loading of export
goods or any class of such
goods.
(6)
Unloading of imported goods
Thirukkadaiyar and loading of export goods
or any class of such goods."
(7)
Unloading of imported goods
Pondicherry
and the loading of export
goods or any class of such
goods.
(8)
Unloading of imported goods
Rameshwaram and the loading of export
goods or any class of such
goods.
(9) Tuticorin
Unloaidng of imported goods
and the loading of export
goods or any class of such
goods.
(10)
Unloading of imported goods
Valinokkam
and the loading of export
goods or any class of such
goods.
(11)
Unloading of imported goods
Veppalodai
and the loading of export
goods or any class of such
goods.
(13)
Unloading of imported goods
Tiruchopuram
and loading of export goods
or any class of such goods.".
402
[Notification No. 62/94-Cus. (N.T.), dated 21-11-1994 as amended by Notification
No. 25/95-Cus. (N.T.), dated 20-4-1995, Notification No. 29/95-Cus. (N.T.), dated 15-1995, Notification No. 74/95-Cus. (N.T.), dated 20-12-1995, Notification No. 1/96Cus.(N.T.), dated 16-1-1996, Notification No. 3/96-Cus.(N.T.), dated 16-1-1996,
Notification No. 5/96-Cus. (N.T.), dated 24-1-1996, Notification No. 18/96-Cus.
(N.T.), dated 22-3-1996, Notification No. 34/96-Cus. (N.T.), dated 16-7-1996,
Notification No. 55/96-Cus.(N.T.), dated 14-11-1996, Notification No. 11/97-Cus.
(N.T.), dated 26-3-1997, Notification No. 26/97-Cus. (N.T.), dated 2-7-1997,
Notification No. 50/97-Cus. (N.T.), dated 29-9-1997, Notification No. 51/97-Cus.
(N.T.), dated 29-9-1997, Notification No. 52/97-Cus.(N.T.), dated 13-10-1997,
Notification No. 69/97-Cus. (N.T.), dated 15-12-1997, Notification No. 11/98-Cus.
(N.T.), dated 23-2-1998, Notification No. 36/98-Cus. (N.T.), dated 9-6-1998,
Notification No. 38/98-Cus. (N.T.), dated 9-6-1998, Notification No. 40/98-Cus.
(N.T.), dated 24-6-1998, Notification No. 72/98-Cus. (N.T.), dated 16-9-1998,
Notification No. 3/99-Cus. (N.T.), dated 8-1-1999, Notification No. 39/99-Cus. (N.T.),
dated 16-6-1999, Notification No. 40/99-Cus. (N.T.), dated 24-6-1999, Notification
No. 63/99-Cus. (N.T.), dated 17-11-1999, Notification No. 1/2000-Cus. (N.T.), dated
5-1-2000, Notification No. 30/2000-Cus. (N.T.), dated 4-5-2000, Notification No.
53/2000-Cus. (N.T.), dated 4-9-2000, Notification No. 54/2000-Cus.(N.T.), dated 219-2000, Notification No. 62/2000-Cus.(N.T.), dated 17-10-2000, Notification No.
1/2001-Cus. (N.T.), dated 24-1-2001, Notification No. 46/2001-Cus. (N.T.), dated 269-2001 ,Notification No.41/2002 -customs (N.T.) dated 27-06-2002, and 50 /2002Customs (N.T.) dated 29-07-2002]
403
CHAPTER – TEN
10.
WAREHOUSING
Chapter IX, i.e., Section 57 to 73 of the Customs Act, 1962 deals with
warehousing. The object of warehousing is to allow the trade the facility of deferring
payment of duty on imported goods till their actual clearance for home consumption
or re-export or for use as provisions and stores on board any vessel proceeding to a
foreign port. Warehousing is permissible in a Public or Private Bonded warehouse.
When an importer warehouses the imported goods in the Bonded Warehouse
without payment of duty after execution of Bond under Section 59 of Customs Act,
1962, the goods stored therein are referred to as Bonded goods or warehoused
goods. Essentially, at a place declared as a warehousing station an Assistant
Commissioner of Customs can appoint a public warehouse under Section 57 and
licence a private warehouse under Section 58 of the said Act.
10.01
Warehousing Stations
10.01.01
In terms of Section 9 of the Customs Act, 1962 read with Notification
No.33/94-Cus. dt.1-7-1994, the Chief Commissioner of Customs may declare places
to be warehousing stations at which alone public warehouses may be appointed and
private warehouses may be licensed. Thus, goods can be warehoused only at such
places.
10.01.02
There should be as few a number of places which should be declared
as warehousing stations as possible having regard to the proximity to the Port, the
requirement of trade and industry, the availability of Customs expertise etc. The
warehousing stations should be so chosen that the industrial units located in the
interior, uniformly and without discrimination, get the benefit of the facilities. If the
number of places is kept minimal and uniform, it will be possible to cater better to the
needs of the staff for exercising powers in regard to warehoused goods. It should
also be possible to keep the number of warehouses to the minimum and yet cater to
404
the needs of the industry adequately if, instead of a number of private warehouses, a
single public warehouse is appointed at an appropriate station.
[F.No. 473/147/79-Cus VII, dated 7.7.1980] and Notification No.33/94(NT)-Cus,
dated 1.7.1994]
10.02 Public Bonded Warehouses
10.02.01
Besides Central Warehousing Corporation and State Warehousing
Corporations, considering the management of CFSs and ICDs has been entrusted to
private operators private operators are allowed to be appointed as custodians of the
Public Bonded warehouses.
10.02.02
The concerned Commissioner should ensure that while appointing any
private operator as a custodian of Public Bonded warehouse, the application is
carefully scrutinised and factors such as the feasibility and financial viability of the
warehouse operator, credibility, financial status, past record to comply with Customs
and Excise Laws, expertise in warehousing field, etc. are given due consideration.
Besides, operational requirements such as, suitability and security of the premises,
availability of Customs expertise, proximity to the users etc. are to be taken into
account. The applicant should agree to take the services of the Customs officers on
cost-recovery basis, if the services are required on a continuous basis (i.e. 9 AM to 6
PM), or on payment of MOT/Supervision charges, as the case may be.
10.02.03
Statutorily the Deputy/Assistant Commissioner of Customs can
appoint a Public Warehouse at any warehousing station, but this power shall be
exercised by the concerned Commissioner.
10.02.04
Bonding in open spaces is not to be encouraged, but this can be
allowed when warranted in the judgment of the Commissioner.
405
[F.No.3/65/65-Cus VII, dated 9.2.1966 and F. No. 473/147/79-Cus VII, dated
7.7.1980]
10.03 Private Bonded Warehouses
10.03.01
Private Bonded warehouses belong to individual private firms of
importers and are licensed as such under Section 58(i) of the Customs Act, 1962 by
the Deputy / Assistant Commissioner of Customs.
10.03.02
Application for a licence for a private warehouse under Section 58(i) of
the Customs Act should be the form C.B.R. Cus. 202.
10.03.03
Requests for grant of licence for private Bonded warehouses will be
considered and decided at the level of the Commissioners.
10.03.04
Private Bonded warehouse licences may be allowed without any
restriction regarding the type of goods to be warehoused. The Commissioners may
carefully scrutinise whether the applicant is financially sound, has good credibility,
and has not been involved in any Customs or Excise duty evasion in the preceding 5
years. This is subject to the condition that the premises are suitable and adequately
secured and the applicant agrees to take the services of the Customs officers on
cost-recovery basis, if the services of the officer are required on a continuous basis
(i.e. 9 AM to 6 PM) or on payment of MOT/Supervision charges, as the case may be.
10.03.05
Request for holding a Private Bonded Warehouse should not be turned
down on the mere reasons of availability of space in a Public Bonded warehouse. If
an applicant is otherwise fit to hold a licence, and shows that it would be highly
inconvenient or would definitely handicap his business, if he had to operate in a
Public Bonded warehouse, it can ordinarily be held that there is sufficient justification
for issuing a licence for a Private Bonded warehouse to such an applicant.
406
[F.No. 3/30/60-Cus. VII, dated 6.9.1960 and Circular No. 68/95Cus, dated 15.6.1995]
10.04 Guidelines for Storing Sensitive and Non-sensitive Goods
10.04.01
(i)
Guidelines for storing sensitive goods:
Applicants should produce a solvency certificate (not a reference or
confidential certificates) from a scheduled Bank of repute (i.e., other than a
cooperative bank which has operations limited to a city, etc.) for a value of not less
than Rs.50 lakhs.
(ii)
Such warehouses should not be located in residential areas;
(iii)
The premises must be carefully checked to ensure against theft, pilferage or
other risks and these are easily accessible for the departmental officers for surprise
checks.
(iv)
Adequate provisions for fire fighting operations should be ensured.
(v)
Goods deposited should be fully insured by the warehouse-keeper against
theft, pilferage, fire accidents, other natural calamities, risks against rioting, etc. at
least for a value equal to the Customs duty by a comprehensive Insurance Policy
drawn in favour of the Commissioner of Customs.
(vi)
It should be ensured that in respect of new applicants, their record is clean
and that the proprietor or partner or any of the directors are not involved in any
Customs duty evasion or smuggling offences (other than technical offences).
(vii)
If track record of existing warehouse-keepers is not found satisfactory or
cases have been registered for illegal removal or improper compliance of the rules
and regulations, immediate action should be taken to cancel their licences after
observing the principles of natural justice. Where duty evasion is found to be more
than one lakh, either in individual case or in a series of offences, the cases of such
licences should be reviewed for action.
(v)
In respect of individual consignments to be warehoused, the licensees are to
give a Double Duty Bond and in case of sensitive goods, a cash deposit or bank
guarantee equal to 25% of the duty liability (effective duty foregone) may be taken
407
(this requirement of cash deposit or bank guarantee in respect of sensitive goods
shall apply to both Private Bonded Warehouses and Private Owned Public Bonded
Warehouses). However, where a warehouse-keeper wants to have revolving Bond
with a single bank guarantee for a higher amount, it can be accepted and suitable
credit/debit system for each consignment warehoused/cleared operated.
[Circulars No.99/95-Cus, dated 20.9.1995 and No.18/2007–Cus, dated 24.4.2007]
(vi)
Commissioners should decide as to what is sensitive and what is not, after
taking into consideration the nature of commodity, the rates of duties and the
licensing aspects involved.
[Circular No. 20/96 – Cus., dated 4.4.1996]
10.04.02
Guidelines for storing non-sensitive goods:
(i)
Applicant should be solvent for Rs.10 lakhs and with a good record.
(ii)
All other provisions regarding security of the place, location of the place,
insurance to be taken for sensitive goods would mutatis mutandis apply to nonsensitive goods. Normally, the Double Duty Bond with surety would be sufficient, but
Commissioners may ask for a bank guarantee where they are not satisfied about the
transactions of a particular Bonder.
[Circular No. 99/95-Cus, dated 20.9.1995]
408
10.04.03
The Commissioner of Customs might ascertain whether violations by
the applicant are serious or technical in nature. If violations are of serious nature,
the exact seriousness must be examined. If violations committed by the party
indicates deliberate action, the grant of warehousing, licences under Section 58 of
the Customs act, 1962 to the party may not be warranted.
[Circular No.28/96-Cus, dated10.5.1996]
10.05 Preliminary Enquiries Before Grant or Renewal of Licence
10.05.01
Before licence for a private Bonded warehouse is granted or an
existing licence is renewed, it is incumbent on the Custom House to be satisfied that
the applicant for a licence is a person of good financial standing who can be relied
upon. An enquiry as to the financial status of the applicant should therefore be made
confidentially with his bankers and the information submitted to Assistant / Dy.
Commissioner of Customs (Bonds) for orders.
10.05.02
Before granting a licence, it is necessary to verify that the building that
is to be licensed as a private bonded warehouse is in sound condition i.e. suitable
and safe for depositing goods. On receipt of the application, therefore, the building
will be examined by a Preventive Supdt, who will submit his report by filling the
questionnaire form as given below:
(Questionnaire to be filled in by the Officer inspecting the premise to be licensed as
a Private Bonded Warehouse).
Nature of walls.
Nature of roof.
409
Lighting
Are all windows and ventilation spaces properly barred or secured with strong
shutters that can be fastened firmly from inside?
Arrangements for locking door. In particular, are all hasps and staples so secured
that they cannot be unscrewed or otherwise easily withdrawn from outside?
Are all the doorways other than those to which Customs locks are to be affixed,
bricked up or otherwise blocked more securely than by bolting or locking of doors?
Precautions against fire.
Certified that the proposed premises have been verified by me and found
suitable for Customs Bonded Warehouse.
Superintendent of Customs
I/c. Bonded warehouse.
The premises have been verified personally by me and are quite suitable and
are recommended for issue of a warehouse licence.
Assistant Commissioner of Customs
10.05.03 The procedure for grant of license shall be followed for renewals also. The
financial status of each licensee will be reviewed every year, but for this purpose, it is
not necessary in all cases to make any written reference to the Bank.
[Check list before a licence is granted or renewed is at the end of this Chapter.]
410
10.05.04 Register of Licences : The Bond Clerk shall maintain a register showing
the list of licences granted for private Bonded warehouses and shall issue a warning
notice to the licensees a month prior to the expiry of the licences. The list should be
kept posted upto-date and all alternations and corrections made on it be initialed,
dated and countersigned by the Superintendent (Bonds).
10.05.05 Validity and cancellation of licence: A licence for a private warehouse shall
be valid for one year and shall be renewable annually, save in exceptional cases. A
licence may also be cancelled by the Asst. Commissioner for the reasons given in
the Section 58(3) of the Customs Act, 1962. When a licence is cancelled on an
application from the licensee, the date on which the cancellation of the licence takes
effect should be taken to be the date of actual removal of the goods therefrom the
purpose of Section 15(b) Customs Act, 1962. Further, a licencee has a legal claim
to have his licence cancelled before the expiry period of its validity, provided duty is
paid on the goods stored in the warehouse.
10.06 Customs Control Over Private bonded Warehouses
10.06.01
The warehouse should be under double lock, one of the Custom House
and the other of the licensee. The Custom House locks should be Godrej lock and
they should be purchased at the expense of the licensee. The set of keys in actual
use shall be in the custody of the Bond Officer in charge of the respective
warehouses and their duplicates shall be kept in the safe custody of Superintendent
in charge of the Bond.
411
10.06.02 Periodical verification of stocks: (i)
Asst. Commissioner (Bonds), should
pay at least one surprise visits in each quarter to check the records of the Bond
Department.
(ii)
Preventive Supdt. (Bonds) shall verify the stocks in private warehouses
periodically. He will satisfy himself that the contents of the packages are intact and
agree with the description given in the relative records, by examining 2% of the
packages of each consignment, subject to a minimum of 1 and maximum of 25
packages. It will be sufficient, in the case of the bagged cargo such as sugar, to
check the contents by probing the bags and in the case of packages containing
motor cars and parts thereof, to remove a plank of the case and inspect the contents
through the opening. In his report the Preventive Supdt. (Bonds) will note the scope
of each inspection.
(iii)
Preventive Supdt. (Bonds) shall carry out inspection and checking of Bonded
stocks by surprise and indicate in a register the dates of such surprise visits,
particulars of Warehouse and stock.
10.06.03 Maintenance of the records of Stocks: (i)
In order that the exact stocks
in a private warehouse on any date (i.e. the balance remaining after deliveries) may
be disclosed, the Bond Department shall maintain, at the end of each volume of a
Bond register, a summary in form given below showing a detailed record of
packages received in the warehouses and the quantity delivered therefrom, from
time to time.
(ii)
The Preventive officer supervising the storage of goods into, or deliveries
from, any private warehouse shall endorse on the respective duplicate into-Bond or
ex-Bond Bill of Entry the date and location of the goods so stored or delivered under
his supervision and forward the documents to the Bond Department.
(iii)
The particulars endorsed on the duplicate into-Bond or ex-Bond Bill of Entry
will be transcribed in the summary and attested by the Senior Clerk in the Bond
department. When half yearly inspection reports are received in the Bond
412
Department, Bond Clerk will check them with the entries in the register and report
discrepancies, if any, to Asst. Commissioner, Bonds.
Bond
No.
Date
of Total No. No.
& Receipt
of of
of Date
Packages
clearanc
Date
goods
packages cleared
e
1
2
3
5
4
of Clerk‟s
initials
6
The licensees of Private Bonded warehouses shall maintain a Stock Account Book in
the form given below.
Stock Account Book
Receipts
Bond S. No. Date
and date
of Vessels
receipt
name
Package
& s
Quantity
Descriptio
marks and / or n
of goods whence
&
in
imported
numbers
3
4
weight
Valu
e
good
s
warehou
se
1
2
5
of
6
7
413
Issues
Operations
Date
of No.
of B/E Cash Amount
performed in Bond clearance packages
under sec. 64 of the of goods
of
C.A.
cleared
with
full
number
Qty. and date
of
Shipping
Duty Bill
No.
paid
and date
12
13
detailed results
8
9
10
11
Name of vessel Balance
Preventive
and Rot. Number
Signature
14
15
16
Officer‟s Remarks
17
10.06.04 Type of goods to be stored and manner of their storage: A licence for a
private Bonded warehouse should be granted on the condition that the warehouse
shall be used by the licensee normally for warehousing his own goods only and that
the goods stored therein shall be stacked in such a manner as to enable easy
access, whenever necessary, to every package or parcel therein. In special cases
where facilities for depositing imported goods in the public warehouse are not
available, the goods, imported by other than the licensee may be allowed in the
licensee‟s warehouse provided the Bond under Section 59 of the Customs Act, 1962
is executed jointly by the importer and the licensee of the warehouse.
414
10.06.05 Cost of Custom House establishment: The cost of any Custom House
Establishment employed at a private Bonded warehouse, permanently or
occasionally, should be defrayed by the licensees concerned.
10.07 Warehousing of Goods in Public Warehouse
10.07.01. An into-Bond Bill of Entry, in duplicate containing such particulars, as may
be prescribed, will be presented by the Bonder to the receiving clerk in the Import
Department who will:
(i)
Verify all the columns therein are properly filled in, and
(ii)
Give a serial number to the Bill of Entry. The Bill of Entry, in duplicate will
then be passed on the party for presentation in the Appraising Department.
10.07.02. The procedure followed in the Appraising Department in regard to the
examination and assessment of the goods will be the same as that followed in the
case of Bills of Entry for home consumption with the following differences that the
Appraisers will see:
(a)
All particulars are correctly entered in both copies of the into-Bond Bill of
Entry;
(b)
Record on both of them in words and figures, the quantities or values on
which Customs duty is leviable and the rate of duty; and
(c)
Initial both copies and ensure particulars ascertained in survey made on
behalf of the Ship‟s Agents should be recorded on both copies.
415
10.07.03
Apportioning of value and quantity in into-Bond Bill of Entry: (i) A
consignment consisting of several packages covered by an into-Bond Bill of Entry
may be removed from the warehouse piece-meal either for home consumption under
cover of one or more ex-Bond Bills of Entry or under cover one or more Shipping
Bills for shipment to foreign ports. Therefore, the total value and quantity of the
consignment declared in the into-Bond Bill of Entry should be apportioned correctly
amongst the various ex-Bond Bills of Entry and Shipping Bills. Toward this, the
Bonder must, at the time of the presentation of the into-Bond Bills of Entry or
Shipping Bills in the Appraising Department indicate on the reverse of the original
copy thereof, the quantity and value (both in foreign and Indian Currency) of the
consignment (when the consignment is cleared in one lot only he must subscribe a
declaration to this effect on the into-Bond Bill of Entry).
(ii)
The assessing Appraiser will attest the values and quantities in token of
having checked them and also show the rate of duty leviable on the goods. When,
however, the contents of all piece-goods contain equal number of pieces of identical
quantity and uniform value (e.g. sugar bags of uniform weight and value), the
assessing Appraiser need only endorse “Contents Uniform” on the reverse of the
into-Bond Bill of Entry.
(iii)
The Appraising Department will verify:
(a)
The invoice value of each individual package has been noted by the Bonder
on the reverse of the into-Bond Bill of Entry and attested by the assessing
Appraiser;
(b)
The equivalent in Indian Currency of such values is correctly calculated by the
Bonder; and
(c)
The total value shown by him on obverse of the Bill of Entry corresponds with
that shown on its front. This will enable the Bond Department to deduce and
certify on the ex-Bond Bills of Entry or Shipping Bills, the exact average value,
number and/or weight of individual packages from the total assessed value,
number and/or weight and there would be no occasion for shortage or excess
in respect of these particulars to be adjusted finally. Thereafter the into-Bond
Bill of Entry shall be forwarded to IAD for pre-audit (in non-EDI cases).
416
(iv)
After pre-audit the into-Bond Bill of Entry shall be forwarded to the Bond Clerk
in the Bond Department who will retain the original and hand over the duplicate Bill
of Entry to the importer or his agent for execution of a Bond under Section 59 of the
Customs Act, 1962.
(v)
On presentation of the Bill of Entry and a Bond required under Section 59 of
the Customs Act, 1962 the Bond Clerk will compare them with the original Bill of
Entry and take the following action:
(a)
Endorse on the face of the duplicate into-Bond Bill of Entry “compared with
the pre-audited original into-Bond Bill of Entry”;
(b)
Note on both copies of the Bill of Entry the period within which the goods
should be warehoused;
(c)
Enter the Bond and all the particulars including the rate of duty in the Bond
register;
(d)
Note the Bond number on the Bills of Entry;
(e)
Take all the Bond registers to the Superintendent/ Bonds, with the Exchange
Control copy and the Bond, who will initial the Bond and sign the Bond
register and also three copies of Bill of Entry, permitting the goods to be
warehoused within the time specified. The Bond (alone) will then be submitted
to Assistant/Dy. Commissioner, Bonds, for his signature in token of its
acceptance;
(f)
Retain the Bond and forward the original into-Bond Bill of Entry on the first
working day of each week (along with similar other original into-Bond Bills of
Entry collected during the previous week) to the Statistical Department for
registration and return;
(g)
Return the duplicate Bill of Entry to the importer as the authority for the
removal of the goods to the warehouse under Preventive supervision;
(h)
Obtain the signature in the Bond and initials in the Bond Register from the
Asst. / Dy. Commissioner (Imports & Bonds) and forward the same with the
register to I.A.D. for complete checking; and
(i)
Forward the original Bond to the Cash Department for safe custody and retain
the duplicate copy of the Bond in the Bond Department.
417
[For Customs Houses/formations having EDI processing of Bills of Entry and
Shipping Bills the procedure of processing into Bond Bill of Entry is given in Chapter
‗EDI‘.]
10.07.04
Procedural
irregularities
in
warehousing
of
goods:
Since
the
warehousing period has to be determined with reference to the order of the proper
officer under Section 60 of the Customs Act, 1962, this order should be given
immediately, once the warehousing Bond is accepted from the importer.
[Circular No. 30/95-Cus, dated 30.3.1995]
10.07.05
Admission of goods into Public Warehouse and action by warehouse
keeper: Please refer relevant parts of Check list III (Examination and Bonding of
Goods) at the end of this Chapter.
10.07.06 Action by Bond officer: (i)
On receipt of the duplicate Bill of Entry from
the warehouse keeper, the Bond Clerk will note in the Bond Register the date on
which the goods were warehoused and see that all the packages covered by the
Bond have been duly warehoused or otherwise accounted for.
(ii)
He will register the particulars in the trade posting registers maintained for the
purpose of preparing the monthly statement of stock balances of certain bonded
goods specified in the Form C.B.R. Cus. 124 and forward the duplicate into-Bond Bill
of Entry to the MCD.
10.08
Admission of Goods to Private Warehouse
418
10.08.01
The procedure will be the same as that for a Public Warehouse except
that when no Customs officer is permanently posted at the warehouse, the duties in
regard to the receipt and storage of the goods in the warehouse and the entry of the
necessary particulars in the stock lists will be performed by the Preventive officer
deputed for the purpose by the Supdt. Preventive Posting section or Bond Deptt. on
an application in writing to this effect being made to him by the Bonder of the goods.
After receiving goods into a private warehouse the Bond Officer will obtain the
licensee‟s acknowledgement for the receipt of the goods on the duplicate Bill of
Entry. The Bond clerk will see that this is invariably done in all cases and submit a
report to the Asst. Commissioner of any cases of failures on the part of the Bond
Officer to obtain the licensee‟s acknowledgement.
10.08.02
Whenever a survey is held on behalf of ship‟s agents on any slack or
deficient packages comprising a consignment entered for warehousing the Bonder
should, prior to the removal of the packages from the Docks to the Warehouse,
repack the deficient packages properly and put a distinctive mark and/or number of
the said packages. The marking should be carried out under Preventive supervision
on an application to Assistant/Dy. Commissioner Bonds. The Officer deputed for the
purpose will make his survey report on the reverse of the into-Bond Bill of Entry and
show the marks and numbers on the packages surveyed.
10.08.03
If, while examining any consignment entered for warehousing the
Examiner finds that some of the packages covered by the into-Bond Bill of Entry
bear common marks but not uniform contents, he may call upon the Bonder to make
another kind of distinguishing marks and/or numbers of such packages and note the
same on the reverse of the into-Bond Bill of Entry of the guidance of Bond
Department.
419
10.08.04
When it is found that the marks or numbers of any packages brought to
the warehouse do not correspond with these shown in the into-Bond Bill of Entry, the
Bonder should be called upon either to account for the discrepancy or to arrange
examination to verify whether the package forms part of the consignment covered by
the Bill of Entry. So long as the package in question is not so examined or the
discrepancy resolved to the satisfaction of the Asst. Commissioner of Customs
(Bonds) the packages cannot be considered to have been duly warehoused nor their
clearance from the warehouse allowed.
10.08.05
All necessary particulars should be transcribed on the reverse of the
original warehousing Bill of Entry as well as in the Bond register from the duplicate
warehousing Bill of Entry sent by Bond Officer. Bond Section will retain the Original
Bill of Entry and forward the duplicate Bill of Entry to the Manifest Clearance
Department.
10.09 Acceptance of Bonds under Section 59
10.09.01
The importer of any dutiable goods which have been entered for
warehousing and assessed to duty under Section 17 or 18 of the Customs Act, 1962
shall execute a Bond (or a general Bond) binding himself in a sum equal to twice the
amount of the duty assessed on such goods and:
(a)
To observe all the provisions of the Customs Act, 1962 and the rules and
regulations in respect of such goods;
(b)
To pay on or before a date specified in a notice of demand all duties, rent and
charges claim-able on account of such goods under this Act, together with
interest thereon;
(c)
To discharge all penalties incurred for violation of the provisions of this Act
and the rules and regulation in respect of such goods; and
420
(d)
Agreeing to recovery of any amount due from him in the manner laid down
under Section 142(1) of the Customs Act, 1962 without prejudice to other
modes of recovery.
10.09.02
The executed Bond shall continue to be in force notwithstanding the
transfer of the goods to any other person or the removal of the goods to another
warehouse. However, when the whole of the goods or any part thereof are
transferred to another person the proper officer may accept a fresh Bond from the
transferee in a sum equal to twice the amount of duty assessed on the goods
transferred and thereupon the Bond executed by the transferor shall be enforceable
only for a sum mentioned therein less the amount for which a fresh Bond is accepted
from the transferee.
10.09.03
The Bond shall be for twice the amount of the Customs duty assessed
on the goods proposed to be warehoused.
It shall be written up properly, all
erasures and corrections therein being initialed by the person signing it. The country
whence the goods are consigned will be shown therein after the words imported by
sea from ….. „ appearing at the foot of the form and the declaration shall correspond
with that in the into-Bond Bill of Entry.
10.09.04
Normally no surety is needed for warehousing Bonds since the goods
themselves are a security in kind.
10.09.05
In the Bond format if alternative words or expressions are provided, the
party executing the Bond should score out words or expressions which are not
relevant to them. As failure to do this would result in an ambiguity likely to prejudice
the interest of the Customs House in a Court of Law, if, at any future date, it be
421
deemed necessary to proceed under that Bond that Bonder must invariably be
required to cancel one of these two alternative expressions.
10.09.06
There should be no difficulty as to the stamp duty payable on a general
continuing Bond under Section 59 (2) of the Customs Act. As for the other Bonds the
stamp duty will be governed by the respective State enactments as may be
applicable.
10.09.07
If a Bond is found before its acceptance, to be understamped, it should
be brought to notice of the Bonder and the deficiency be made good of. If, however
the Bond is over stamped, the fact should be brought to the notice of the Bonder or
his representative so that he may, if he so chooses put in a fresh Bond properly
stamped and obtain a refund. If he does not consider it worthwhile to do this, the
overstamped Bond should be accepted and the following note made thereon –
“overstamped – No action by Bonder.”
10.09.08
Every Bond should be executed for the full period of 3 years, 1 year or
such period allowed by the Assistant Commissioner for which goods are to remain in
a warehouse.
10.09.09
Each Bonder will decide the amount of Bond as per his requirement, but
at any point of time the value of the goods deposited in the warehouse should not
exceed the maximum permissible as fixed by the amount of Bond.
10.09.10
If the Bond is found to be correct in respect of al the particulars
mentioned above and provided the Bond Department is satisfied that it is properly
and duly executed by the owner of the goods or his duly authorised agent, its
422
acceptance cannot be withheld and it shall be submitted to Assistant / Dy.
Commissioner (Bond) for affixing his signature thereto in token of its acceptance. If
found otherwise the Bond shall be returned to the Bonder for amendment.
10.10 Warehousing of Goods Under General Bond
10.10.01
An importer wishing to warehouse goods under a general Bond under
Section 59(2) of the Customs Act, 1962 shall apply to the Assistant / Dy.
Commissioner of Bonds giving full particulars viz. general description, quantity, value
of the good intended to be warehoused for the next four years, purpose for which
warehousing is sought, quantity and value of the goods imported during the
preceding year; and the amount for which the Bond is sought to be executed.
10.10.02
The Assistant / Dy. Commissioner shall see whether the Bond amount
proposed will cover the goods to be imported by the party during the next four years
and thereafter being satisfied grant approval.
10.10.03
On acceptance of the Bond by Assistant/ Dy. Commissioner (Bonds), it
should be registered in a supplementary register, in the proforma set out below. After
registration, the Bond will be forwarded to Cash Department / Bond and Bank
Guarantee Monitoring Cell as the case may be for safe custody. The maintenance of
this supplementary register will not in any way change or interfere with any other
registration that may be required under the existing procedure. Once the Bond is
duly registered in the supplementary register and assigned a number, it will be
intimated to the importer who will thereafter be allowed to warehouse imported
goods during the period specified in the Bond so long as there is sufficient balance to
cover the value of the imported goods. The importer will quote the general Bond
number and date on all references made by him to the Bond Department.
423
10.10.04
Although there will not be individual Bonds, Bond serial numbers will be
assigned for each consignment warehoused and corresponding entry made in the
main Bond register. This number will be quoted in the into-Bond Bills of Entry. The
importers shall also quote the Bond serial number on all the ex-Bond clearance
documents etc. Usual audit check will be conducted for the into-Bond and ex-Bond
clearances.
10.10.05
When the goods covered by a particular Bond serial number are
cleared or accounted for to the satisfaction of the proper officer, such Bond serial
number should be cancelled. Relevant documents relating to such cancelled Bond
serial number should be sent to IAD and Customs Revenue Audit for audit check as
in the case of general Bonds, so as to avoid duplication of work by sending the same
to these departments at the later stage of the cancellation of the relative general
Bond on expiry of its validity period.
10.10.06
With a view to keep a watch over the balance of Bond amount the
Bond clerk should make clear and suitable debit and credit entries in the relevant
columns of the supplementary register, each time an entry is made for warehousing
or clearance and strike the balance. Also, when the duplicate into-Bond Bill of Entry
is received back from the warehouse keeper or Preventive Officer after completion of
warehousing, the Bond clerk should satisfy himself that the quantity warehoused
corresponds to the quantity in the into-Bond Bill of Entry. If there is any difference, he
should make suitable entries in the supplementary register.
10.10.07 All clearances from the warehouse should be noted in the supplementary
register immediately on receipt of the duplicate Bill of Entry, Shipping Bill, or advice
from other port in the case of transfer under Section 67 of the Customs Act, 1962
etc. All such entries shall be initialed by the Bond clerk and the Superintendent
424
Bonds, who shall check the relevant entries and balances with reference to the
entries made in the Main Bond Registers and in the relevant documents. The
balance column of the register will indicate whether the amount in balance is
adequate to cover future consignment to be warehoused. In case of deficiency in the
balance available in the Bond, the importer should execute either an individual Bond
or a general Bond. One consignment shall, however, not be permitted to be split over
two Bonds. If the importer executes another general Bond, it should also be for a
sufficiently large amount so that the earlier general Bond could be cancelled after all
the consignments Bonded thereunder have been cleared or otherwise duly
accounted for to the satisfaction of the Asst. / Dy. Commissioner (Bonds). The
importer will not be permitted to warehouse any more consignment under the first
general continuing Bond.
10.10.08
The general Bond along with the Supplementary Register (format
below) will be put up for audit and thereafter to Assistant / Dy.
(Bonds) for cancellation.
Supplementary Register
Name and address of Importer:
Name and address of Clearing Agent (if any):
Number of acceptance by the Assistant Commissioner:
Date of Expiry: (in red ink).
Value of the Bond: (a) ………………………….. (in figures)
(b)……………………………(in words)
Commissioner
425
Sl
Dat
Referen
Value
Value
the the
of Balanc
No e
ce to the of
.
Main
goods
cleared
Bonds
wareho
(i.e.) home
Register
used
consumptio
(Debit
n shipment
entries.
ex-Bond or
)
transferred
in
goods e
Initials
Initials of Remar
of Bond Superinte
clerk
ks
ndent
(Bonds)
Bonds
(Credit
entries).
1
2
3
10.10.09
4
5
6
7
8
9
Even under a general Bond each individual consignment will be entitled
to have a life of one year in Bond. The minimum period of Bond therefore, has to be
fixed at something in excess of Bond period, with provision to terminate the same by
either side with three months notice. Such notice shall operate to suspend fresh
warehousing after the period of notice but all consignments warehoused till then
shall stand covered by the Bond upto a period one year or a reduced period from the
date of warehousing unless the licence for private warehouse itself is revoked.
426
[F.
No.
3/29/60-Cus
VII,
dated
2.7.63
and
Instruction
No.
27
of 1963]
10.10.10
In case of goods removed to EOU/EHTP/STP units a transit bond or an
insurance policy equivalent to the amount of duty involved may be obtained on the
condition that re-warehousing certificate would be submitted within a period of 30
days from the date of despatch of the goods from the port / airport of import. Where
the party fails to produce the re-warehousing certificate within 30 days consecutively
for more than three consignments, he would be required to support their Bond with
100% Bank Guarantee.
[Circular No. 41/97-Cus, dated 19.9.1997]
10.11 Misuse of Bonded Facility
10.11.01
Goods to be bonded may be removed illegally without payment of duty
before their physical bonding. The modus operandi is that the imported goods are
cleared from Customs on the pretext of bonding, but are taken to a premises wherein
they are substituted with material of no value. The imported goods are then sent to
the importer with fabricated Bills of Entry for home consumption.
Based on the
fabricated documents the importer takes CENVAT credit. Meanwhile, the substituted
material (packed in original packing) is deposited in the warehouse for bonding.
Accordingly, it is necessary to undertake periodical stock taking of all bonded goods
lying in the bonded warehouses beyond 1 year and also to reconcile the records with
the record of the warehouse. Samples may also be taken if necessary. SIIB and
Preventive Branches may also profile the high risk bonded goods/importers to rule
out similar frauds.
427
[Circular No.19/2000-Cus.IV, dated 10.3.2000]
10.12 Warehousing Bond for Ship Stores
10.12.01
Steamer Agents permitted to import controlled food-stuff for purposes
of re-export when required for ship‟s crew and to store these articles in their Bonded
warehouse, shall follow the normal Bond procedure applicable to warehouses where
Preventive Officers are exclusively posted with the exception that instead of the
prescribed Bond under Section 59 of the Customs Act, 1962 the applicant will
execute ITC Bond with the appropriate authorities.
10.12.02
To prevent fraudulent clearances/diversion of duty free imported cargo
from Bonded warehouses under Section 90 of the Customs Act, 1962 for delivery to
Naval Ships and of duty free goods imported for use as ship spares the escorting of
such “ship stores” or “ship spares” should be scrupulously done.
[Notification. No. 211/83-Cus, dated 23.7.1983 and Circular No. 8/98-Cus, dated
11.2.1998]
10.13
Warehousing of Bulk Oil
428
10.13.01
When any of the tanks authorised for receipt/storage of dutiable
petroleum in bulk or any other liquid bulk cargo under Section 8(a) of the Customs
Act, 1962 are intended as Private Bonded Warehouse for storage of bulk oil under
the provisions of Chapter IX of the Act, the owner shall submit an application in the
following format:
FORM OF APPLICATION FOR GRANT/RENEWAL OF OF LICENCE FOR
PRIVATE BONDED WAREHOUSE VIDE SECTION 58 OF CUSTOMS ACT,1962
(1)
Particulars of Licence
(i)
:
For an `Individual‟ or Incorporate Company
a) Name
:
b) Address
:
c) Nature of Business
(ii)
For a Firm
a) Name of Firm
:
:
429
b) Address
:
c) Nature of Business
:
And the following particulars in respect of each person having any proprietary
interest in the firm.
a) Name
:
b) Address
:
c) Description
:
(2)
Description of goods to be warehoused :
(3)
Whether Goods other than those :
belonging to the licence or for which he
is an Agent are to be Warehoused
(4)
Particulars of maximum stock
:
430
intended to be held in the warehouse :
: TANK NO. : ………………………………..
at any one time
a)
Quantity
:
b)
Value – C.I.F.
A.V.
c)
M.T.
: Rs.
: Rs.
Duty (at rates in force at
APPROX.
APPROX.
APPROX.
: Rs.
APPROX.
time of application)
NOTE : In the case of spirit intended for denaturation, this should be separately
specified.
(5)
Particulars of maximum stock actually held at any one time under the expiring
licence (for use in case of renewals only.)
a)
Date
:
431
(6)
b)
No. of packages
:
c)
Value
:
d)
Duty
:
Particulars of any changes in
:
proprietorship of the firm since date of
last renewal (to be filled in only by firms
applying for renewal)
(7)
Particulars of premises to be licensed
:
a)
Name and Address of owner
:
b)
Place at which situated
:
c)
Dimensions
:
432
d)
i) Diameter
:
ii) Height
:
Distance from the Custom :
House
NOTE : If more than one godown is to be licensed, separate particulars should be
given for each if necessary in separate sheet.
(8)
Name & Address of Banker or other
:
person to whom reference may be made
regarding the financial status of licencee
We declare the above particulars to be true and apply for the grant/renewal of the
licence under Section 58 of the Customs Act, 1962 in accordance therewith.
PLACE :
DATE
:
433
10.13.02
Along with the application must be submitted Solvency Certificate
issued by Bank, Insurance Policy, Empty Dip memo duly certified by the Preventive
Officer and valid calibration chart.
10.13.03
Concerned Asst. Commissioner should grant licence for tanks on
compliance of conditions of warehousing, as applicable to private bonded warehouse
at 10.04 and 10.05 above.
[Please see Chapter ‗Oil & Petroleum‘ for procedure of discharge and clearance of
liquid cargo in bulk.]
10.14 Period of Warehousing
10.14.01
After the date on which the proper officer has made an order under
Section 60 of the Customs Act, 1962 permitting the deposit of the goods in a
warehouse the goods can remain the warehouse for the following periods:
(a) 5 years - in the case of capital goods intended for use in any EOU;
(b) 3 years - In the case of goods other than capital goods intended for use in
any EOU; and
(c) 1 year - In the case of any other goods.
10.14.02
Commissioner of Customs can extend the warehousing period for any
further period as he may deem fit in case of goods intended for use in any EOU and
in other cases for a period not exceeding six months.
Chief Commissioner of
Customs can extend for such further period as he may deem fit. The guidelines in
this regard are as follows:
434
(a)
Requests to the Chief Commissioners for extension in warehousing period
beyond the extension granted by the Commissioner of Customs, may be
considered for the shortest period, not exceeding three months at a time.
Such extensions are to be granted after due circumspection and only in
deserving cases.
(b)
Requests for extension at the Chief Commissioner‟s level may be considered
only in respect of those cases where it is really warranted that the goods have
to be kept in the warehouses under circumstances beyond of the control of
the importers viz., closure of the factory due to strike, lock-out, natural
calamities etc. Financial constraints of the importers are not to be considered
as adequate ground for granting extensions of warehousing period.
(c)
For granting extension of warehousing period, the concerned authority should
be satisfied regarding the condition of the goods and that they are not likely to
deteriorate during the extended period. Whenever necessary, goods should
be got tested to ensure quality and fitness before granting further extension of
warehousing period.
(d)
Liberal approach may be adopted in granting extension of warehousing period
in respect of the following cases provided the goods are in good condition and
not likely to deteriorate during the extended period of warehousing:
(e)
(i)
Goods supplied as ship stores/aircraft stores,
(ii)
Goods supplied to diplomats,
(iii)
Goods warehoused and sold through duty free shops,
(iv)
Goods imported by EOUs, and
(v)
Goods used in manufacture – in – bond scheme.
In respect of machinery, equipment, and raw materials imported for
building and fitment to ships the applications for extension of warehousing
period should be filed, as far as possible, prior to fifteen days of the
435
warehousing period. All such requests should normally be decided within this
period. Requests for grant of extensions of warehousing period can also be
considered after the expiry of initial or extended period of warehousing, after
taking into consideration the exceptional circumstances of the case, nature of
commodity, rate of duties, particularly, whether the same could result in loss
of revenue to the Government, licensing aspects involved, etc.
[Circular No.47/2002-Cus, dated 29.7.2002]
10.14.03
In case of other goods (not meant for EOU) if they are likely to
deteriorate Commissioner of Customs may reduce the period to such shorter period
as he may deem fit.
10.14.04
In cases where the licence for private warehouse is cancelled, the
owner of any goods warehoused, has to clear the goods within seven days from the
date of cancellation notice or within such extended period as the proper officer allow.
10.14.05
Section 61 also provides for charging of interest on amount of duty
payable on warehoused goods. Further it empowers the Board to:
(a)
To waive the whole or part of any interest payable.
(b)
Notify the class of goods in respect of which no interest shall be
charged.
10.15 Duty on Goods After Expiry of Warehousing Period
436
10.15.01
Supreme Court‟s judgment dated 23.8.1996 in Civil Appeal No. 4459 of
1989 in case of Kesoram Rayon vs. Commissioner of Customs, Calcutta held that
goods not removed from a warehouse within the permissible or extended period are
to be treated as goods improperly removed from the warehouse. In such a case the
importer is required to pay the full amount of duty chargeable on the goods together
with interest, penalties, rent and other charges. Also, the duty would be chargeable
at the rate applicable on the date of their deemed removal from the warehouse, that
is, the date on which permitted or extended period expired. Thus, the date of
payment of duty in the case of warehoused goods removed after the expiry of the
permissible or extended period would be the date of expiry of the warehousing
period or such other extended period as the case may be and not the date of
payment of duty.
[Circular No. 31/97-Cus., dated 10.8.1997]
10.16 Levy of Interest on Customs Duty on Warehoused Goods and Waiver
thereof
10.16.01
Section 61(2) of the Customs Act, 1962 provides for charging of 15%
interest on the duty payable at the time of clearance of warehoused goods for the
period from the permitted warehousing period till the date of payment of duty, as
follows:
(a)
With regard to goods specified under Section 61(i)(a) and (aa) of the Customs
Act, 1962 i.e., goods warehoused by EOUs, the interest rate @15% is that
437
specified in Section 47 of the said Act vide Notification No.28/2002-Cus(NT),
dated 13.5.2002.
(b)
With regard to goods covered under Section 61(i)(b) i.e., all other goods, the
interest rate @15% is specified vide Notification No.18/2003-Cus(NT), dated
1.3.2003.
[Circular No.12/2007-Cus, dated 10.2.2007]
10.16.02
As per Notification No.122/2004-Cus (NT), dated 25.10.2004 the Chief
Commissioners of Customs and Central Excise may waive interest of upto Rs.2
crores as per certain guidelines that generally require waiver of interest on specified
imports (ship stores etc.) wherein the import duty is finally not payable and in other
cases where the nature of activity (ship building, power generating project) require
the imported goods to be retained for a longer period of time and charging of interest
would unnecessarily escalate the costs. This is however subject to the individual
merits of a case. In general the following goods/import would merit interest waiver:-
(i)
Goods supplied as stores/aircraft stores (after bond clearance).
(ii)
Goods supplied to diplomats (after bond clearance).
(iii)
Goods used in the units operating under manufacture-in-bond.
(iv)
Goods imported by EOUs (after completion of export obligation).
(v)
Goods warehoused and sold through duty free shops.
(vi)
Machinery, equipment and raw materials imported for building and fitment to
ships (after the goods have been cleared from warehouse for actual use for
building/fitment to Ships).
(vii)
Petroleum products.
(viii)
Plant and machinery imported projects.
(ix)
Machinery, equipment and raw-materials imported for manufacture and
installation of power generation units.
438
(x)
Goods imported under OGL and warehouse for subsequent clearance against
Valid Advance Licenses / Import-Export Pass Book Schemes and Similar
Schemes.
(xi)
Goods imported in bulk by canalizing agencies/public sector trading or
Service agencies and warehouse for subsequent release for export
production.
(xii)
Imports under EPCG Scheme.
(xiii)
Import of capital goods by Public Sector Undertakings.
[F. No. 473/24/97-LC, dated 12.5.1999]
10.16.03
In all cases the demand for interest are to be raised when due, but not
enforced and on fulfillment of the purpose of the import, the waiver of interest is to be
decided within six months. Thus, the activity of the importers is to be allowed to
continue, which includes clearance of the goods from the warehouse for the purpose
of use, and only at the last stage after the goods have been cleared or at the time of
de-bonding in cases of EOUs, the waiver of interest is to be decided.
10.16.04
Cases not covered by guidelines and cases relating to interest accrued
on scrap generated during the manufacturing activities of EOUs should be referred
to the Board for decision.
[Circular No.10/2006-Cus, dated 10.2.2006]
10.16.05
Interest accrued on capital goods, permissible office equipments,
captive power plants, tools, jigs, gauges, fixtures, moulds, dies, instruments and
439
accessories imported by EOUs has been exempted. Interest is chargeable on goods
cleared from a warehouse when duty is paid by way of debit in DEPB licenses.
10.16.06
In respect of goods imported by EOUs waiver of interest shall be
considered on completion of the export obligation period. However, when EOUs do
not fulfill their export obligation and are allowed pre-mature debonding (without going
into production or without export), the interest waiver does not merit consideration
except in very exceptional circumstances.
[F. No. 475/82/92-LC, dated 10.2.1994]
10.16.07
At present, interest at a flat rate of 15% is chargeable after completion
of warehousing, but for the past periods it is to be calculated at prescribed different
rates of interest at different periods of duration of warehousing.
10.16.08
Interest under Section 68 of the Customs Act, 962 relates to interest on
other dues such as warehouse charges rent etc., and not duty.
10.17 Control Over Warehoused Goods
10.17.01
In terms of Section 62 of the Customs Act, 1962 the following control
shall be exercised on the warehoused goods:
(a)
All warehoused goods shall be subject to the control of the proper officer.
440
(b)
No person shall enter a warehouse or remove any goods therefrom without
the permission of the proper officer
(c)
The proper officer may cause any warehouse to be locked with the lock of the
Customs Department and no person shall remove or break such lock.
(d)
The proper officer shall have access to every part of a warehouse and power
to examine the goods therein.
10.17.02
Section 63 of the Customs Act, 1962 deals with the payment of rent
and other charges for the warehoused goods, as follows:
(a)
The owner of any warehoused goods shall pay to the warehouse-keeper rent
and warehouse charges at the rates fixed under any law in force or where no
rates are so fixed, at such rates as may be fixed by the Commissioner of
Customs.
(b)
If any rent or warehouse charges are not paid within 10 days of becoming
due, the warehouse-keeper may, after notice to the owner of the warehoused
goods and with the permission of the proper officer cause to be sold (any
transfer of the warehoused goods notwithstanding) such sufficient portion of
the goods as the warehouse-keeper may select.
10.17.03 Section 64 of the Customs Act, 1962 prescribes the manner in which the
owner of the warehoused goods may deal with them with sanction of the proper
officer and on payment of the prescribed fees, either before or after warehousing, as
follows:
(a)
Inspect the goods;
(b)
Separate damaged or deteriorated goods from the rest;
441
(c)
Sort the goods or change their containers for purpose of their preservation,
sale, export or disposal;
(d)
Deal with the goods and their containers to prevent loss or deterioration or
damage to the goods;
(e)
Show the goods for sale; or
(f)
Take samples without entry for home consumption, and if permitted, without
payment of duty.
10.18 Manufacture and Other Operations in Warehouse
10.18.01
In terms of Section 65 of the Customs Act, 9162 with the sanction of
the Assistant /Deputy Commissioner of Customs and subject to conditions and on
payment of prescribed fees, the owner of any warehoused goods may carry on any
manufacturing process or other operations in the warehouse.
10.18.02
If during the course of any operations in relation to warehoused goods
there is any waste or refuse, the following provisions shall apply: -
(a)
If the whole/ part of the resultant goods are exported, import duty shall be
remitted on the quantity of the warehoused goods contained therein the waste
or refuse subject to the waste or refuse being destroyed or duty is paid on it
as if it had been imported in that form;
(b)
If the whole/ part of the resultant goods are cleared for home consumption,
import duty shall be charged on the quantity of the warehoused goods
contained in the waste or refuse as has arisen in relation to the goods cleared
for home consumption.
442
10.18.03
The Manufacture and Other Operations in Warehouse Regulations,
1966 indicate the requirements for carrying out the manufacturing activity in the
warehouse, which include the following:
(i)
Application in proper form.
(ii)
Execution of bond.
(iii)
Details of charges to be paid.
(iv)
Procedure for sanction to carry on manufacturing process in Bond.
(v)
Maintenance of accounts
(vi)
Special audit in certain cases
(vii)
Procedures of cancellation and suspension of sanctions.
10.18.04
The guidelines while deciding such requests are that the facility may be
extended mainly to export oriented units so that unnecessary difficulties in first
paying duty and later claiming Drawback can be avoided. The export orientation can
be determined by comparing the following figures:
(a)
Total value of goods manufactured by using imported raw materials;
(b)
Total value of such finished goods exported; and
(c)
Total value of such finished goods retained for domestic sale.
10.18.05
A flexible approach may, however, be adopted in the matter so that
there is no instance that the exports have to be less than 50% of imported materials.
Further the Manufacture-in-Bond operations are required to be carried out under
Customs supervision on cost recovery basis. The Commissioners may carefully
scrutinise the applications for grant of in-Bond manufacture facility and if the
applicants are financially secure, has good credibility, and has not been involved in
Customs or Excise duty evasion in the preceding 5 years in the normal course, an in-
443
Bond manufacture licence under Section 65 may be granted. This would, of course,
be subject to the condition that the premises are suitable and adequately secured.
While granting the requests, the provisions of the Manufacture and other operations
in Warehouse Regulations, 1966 have also to be complied with.
[Circular No. 132/95-Cus, dated 22.12.1995]
10.18.06
As per Section 66 of the Customs Act, 1962 if any imported materials
are used in accordance with the provisions of Section 65 for the manufacture of any
goods and the rate of duty leviable on the imported materials exceeds the rate of
duty leviable on such goods, the Central Government, if satisfied in the interests of
the establishment or development of any domestic industry by notification exempt
the imported materials from the whole or part of the excess rate of duty.
10.19 Removal of Goods From One Warehouse to Another
10.19.01
As per Section 67 of the Customs Act, 1962 the owner of any
warehoused goods may, with the permission of the proper officer, remove them from
one warehouse to another, subject to such conditions as may be prescribed for the
due arrival of the warehoused goods at the warehouse to which removal is
permitted.
10.19.02
Application for removal of goods from one warehouse to another will be
presented in the prescribed form to the Bond department.
444
10.19.03
The Bond department will see that the particulars in the application
agree with the entries in the Bond Register, note therein the receipt of the application
and submit it to the Assistant Commissioner for his orders. The orders will be
endorsed on the application, which will then be returned to the owner.
10.19.04
If permitted, the file will be forwarded to the Preventive Department to
depute, on receipt of an application from the owner, an officer to supervise the
transfer of the goods (if no Customs officer is posted in charge of that warehouse).
10.19.05
The owner will present the application to the Officer, in charge of the
warehouse from which the goods are to be removed or to the officer deputed to
supervise the removal. This officer will allow delivery of the goods, endorse the
application and make a note in the stock list to that effect and the goods will be
transported under the supervision of the Officer deputed for the purpose.
10.19.06
On arrival of the goods at the warehouse where the goods are to be
deposited, the supervising Officer or the Officer in charge, will see that the goods
covered by the application are duly stored in the warehouse and will make an
endorsement to that effect on the application which will then be returned by the
supervising Officer to the Bond department.
10.19.07
The Bond officer will make a note of the transfer of the goods in the
Bond register and forward the application in the usual course to the warehouse
keeper to be filed with the relative original into-Bond Bill of Entry.
445
10.19.08
In the case of bulk oil transfers the Bond Clerk will, on receipt of the file
from the oil Appraiser, note the complete particulars of the transfer in the Bond
Register and make necessary endorsements forwarded to IAD for scrutiny.
10.19.09
On receipt of the oil transfer files, the Bond officer will recover duty on
the unaccountable loss and the transfer loss and if there be any gain, proceed with
the refund when a claim is received from the Bonders.
10.19.10
He will finally note the amount of duty recovered in the Bond register
with full particulars of the bill number and date and forward the file to records to be
filed with relative Bond documents.
10.19.11
In case of goods to be shipped by Sea from Bond under the provisions
of Section 67 of the Customs Act, the following procedure will be observed:
(a)
The owner will prepare a Shipping Bill in triplicate in the prescribed form with
the words `From Bond‟ written prominently in red ink at the top of each copy
and present the documents to the Bond Clerk along with a Bond in the
prescribed form. One Bond is sufficient for all goods shipped by the same
Shipper by the same ship even though the goods are covered by more than
one Shipping Bill (vide C.B.R. Letter D. Dis. No. 15-Cus.1/40, dated
29.1.1940). The Bond officer will –
(i)
Satisfy himself that the goods are entered for shipment to a
warehousing port and that the warehousing licence at the other end is
valid and would accommodate the goods sought to be transferred. (A
certificate
to
Commissioner
this effect should be
of
obtained
Customs/Central
from the Asst.
Excise/Superintendent
446
(Customs)/Central Excise in charge of the warehouse and presented
along with transfer application);
(ii)
Compare and record the particulars of goods entered for shipment
against the entries in the Bond register;
(iii)
Check the Bond to see that it is correctly prepared and stamped;
(iv)
Take necessary action to recover charges, if any, leviable on the
goods; and
(v)
Endorse and initial the order in the Shipping Bill permitting shipment of
the goods under Section 67 and submit the documents with the Bond
to the Assistant Commissioner for signature of the order and
acceptance of the Bond.
(b)
On receipt of the duplicate and triplicate shipping
bills from the Export
Department, the owner will obtain form the Preventive Department, the
services of an officer to supervise the removal and shipment of the goods,
and will present the documents to the warehouse keeper, or in the case of a
private warehouse, to the officer to issue the goods therefrom.
(c)
The warehouse keeper or the officer deputed to issue the goods will allow
delivery after satisfying himself that rent has been recovered, if leviable and
that duty on deficient contents, if any, (found after examination of the
outwardly defective packages) has been collected, note the clearance of the
goods on the relative stock list and on the duplicate Shipping Bill and hand
over the duplicate and triplicate Shipping Bill to the supervising officer.
(d)
The supervising officer should satisfy himself as to the condition of the
packages before removal and if found to be in good order, he should make an
endorsement to that effect on the reverse of the Shipping Bill. If, on the other
hand, any package is found to be broken or tampered with, then he should
open and examine the package in the presence of the shipper or his
representative, prepare a list of the contents thereof and note therein the
condition of the package and should sign and date the list and should also get
the shipper or his representative to sign the list. He should thereafter proceed
with the shipment. The list with the report as to the condition of the packages
should be forwarded to the Bond department in the Import Department who
447
should obtain the invoice for the package to ascertain whether there is any
shortage on which duty should be recovered under the Bond.
(e)
After the goods have been shipped under supervision, the supervising officer
will make a note of the fact on the reverse of the Shipping Bill, hand over the
triplicate copy to the ship‟s officer and send the duplicate to Bond Department.
(f)
The Bond officer will deal with the Shipping Bill as in the case of free goods
and prepare an advice in the prescribed form (C.B.R. Cus.33) for despatch to
the Customs officer at the port of destination after verifying whether the goods
have been actually shipped.
(g)
On receipt of intimation regarding the due arrival and rewarehousing or
clearance of the goods at the port of destination, the Bond officer shall–
(i)
After audit put up the Bond to the Assistant Commissioner for
cancellation;
(ii)
Complete the entries in the Bond Register and submit the Shipping
Bills with the register to the Superintendent Import & Bond Department,
for check of the clearance posted and initial the register in token
thereof;
(iii)
10.19.12
Send the Shipping Bills to the IAD with the registers.
Removal of goods by inland carriage under Section 67 of the Customs
Act, 1962 shall be as above with the following deviations:
(a)
The Customs Officer deputed for supervision will accompany the goods to the
Booking Office and after they are consigned to the Officer in charge of the
warehouse where the goods are to be deposited send the railway receipt with
the application to the Bond department.
448
(b)
The Bond officer will despatch the railway receipt with a covering advice
signed by he Assistant Commissioner to the officer to whom the goods are
consigned.
(c)
On receipt of the intimation from the officer in charge of the warehouse to
which the goods are consigned regarding the arrival of and rewarehousing of
the goods, the Bond filed under Section 67 of the Act will be cancelled by the
Assistant Commissioner.
10.19.13
The warehousing facility for petroleum and petroleum products is
available only at the port of import, and no removal to inland bonded warehouses
without payment of Customs duty is allowed except for goods exempted from
payment of Customs duty in terms of relevant Customs notifications or to goods
imported by EOUs, STPs, EHTPs and SEZs.
[Circulars
No.8-Cus,
dated
10.2.2005
and
No.
9-Cus,
dated
15.2.2005]
10.19.14
Removal of Warehoused goods: The importer (or owner) may clear the
warehoused goods for home consumption on payment of duty warehouse rent,
interest etc. (if any). For this purpose, he is required to file a ex-bond Bill of Entry
under Section 68. This Bill of Entry will be filed in the Import Department. After
assigning admission number and date it is transferred to the Bonds Department
where the Bond officer verifies the declared particulars with the particulars already
entered in the Warehouse Register Thereafter, the Appraising Group assesses the
449
Bill of Entry. The importer pays the duty and obtains out of charge order on the
reverse of the duplicate Bill of Entry from the Superintendent (Bonds). He then
produces this duplicate Bill of Entry to the Bond Officer or Warehouse Keeper and
clears the consignment from the warehouse. Under Section 15(1)(b), the rate of
duty applicable to such goods is the rate prevailing as on the date of filing of ex-bond
Bill of Entry. More than one clearance of a single warehoused consignment can also
be effected by filing different bills of entry under Section 68. As far as the rate of
exchange is concerned, the same rate that prevailed on the date of filing of the intoBond Bill of Entry by the importer is applicable to all clearance ex-Bond.
[Procedure of processing into Bond Bills of Entry / Shipping Bill under EDI is given in
the Chapter ‗EDI‘.]
10.19.15
Warehoused Goods (Removal) Regulations, 1963: These Regulations
prescribe the conditions of removal of goods from one warehouse to another, as
follows:
(a)
Where the goods are to be removed from one warehouse to another in the
same town, the proper officer may require that the transport of the goods to
be under the supervision of an Officer of Customs at the owner‟s cost.
(b)
Where the goods are to be removed from one warehouse to another in a
different town, the proper officer may require the person requesting the
removal to execute a Bond (with surety or security or both) for a sum equal to
the amount of import duty leviable on such goods. The terms of the Bond
shall require the production within three months (or extended period), a
certificate issued by the proper officer at the place of destination that the
goods have arrived at that place. If the certificate is not produced, an amount
equal to the import duty
leviable on the goods shall stand forfeited.
450
[Notification No. 59/63-Cus, dated 1.2.1963]
10.19.16
Remission of duty on legal breakage: When warehoused goods are
lost or destroyed in transit from one warehouse to another so long as loss or
destruction of goods takes place before the clearance of the goods for home
consumption as specified in Section 23 of the Customs Act, 1962 remission of duty
has to be allowed. `Loss‟ for this purpose does not include pilferage, which is
covered by Section 13 of the said Act. Further, transit losses are normally very
nominal. For liquor bottles, breakage during transit do not exceed ½% and in the
case of first importation at port losses should be much less. For purpose of
establishing transit losses, the examination should be carried out under the
supervision of Gazetted Officers and the necks of the bottles with pilfer proof-caps
intact submitted to the Asst. Commissioners for destruction along with the
examination report. Where breakages in excess of ½% for liquor bottles are noticed,
such breakages should be properly looked into in order to check malpractice and the
warehouse keepers should be asked to take steps to reduce the breakages. Where
such cases of breakages persist steps should be taken to cancel the warehouse
licence.
[F.No. 473/8/71- Cus VIII, dated 31.1.1972]
10.20 Transit Bond for Transfer or Bonds to Interiors
451
10.20.01
Where the imported goods are stored in a private Bonded warehouse
within the same metropolitan city, the regulations allow it to be sent under escort. In
such cases, there is no need for a transfer Bond.
10.20.02
Where the goods have to go outside the city, a transfer Bond is
required to be taken but where a transfer takes place within the territorial jurisdiction
of the Commissioner of Customs and is within a reasonable distance say upto 50
kms, he may wave the bank guarantee if he is satisfied with the bona fides of the
party and the goods are sent under escort;
14.20.03
In respect of sensitive goods, the duty should be secured by a transit
Bond backed by a bank guarantee or a cash security for 50% of the duty involved. In
respect of non-sensitive goods transit Bond would be covered by a bank guarantee
or a cash security for 25% of duty involved. The Commissioners may demand bank
guarantee/security up to the value of duty
amount, if they consider it necessary in
certain cases.
[Circulars No. 99/95, dated 20.9.1995 and No. 20/96, dated 4.4.1996]
10.21 Clearance of Warehoused Goods for Export
10.21.01
Section 69 of the Customs Act 1962 stipulates that warehoused goods
may be exported to a place outside India without payment of import duty if –
452
(a)
Shipping Bill or a Bill of Export has been presented in respect of such goods in
the prescribed form;
(b)
Export duty, penalties, rent, interest and other charges payable in respect of
such goods have been paid; and
(c)
An order for clearance of such goods for exportation has been made by the
proper officer.
10.21.02
If the Central Government is of opinion that warehoused goods are
likely to be smuggled back into India, it may, notify such goods that shall not be
exported without payment of duty or may be allowed to be exported subject to
certain restrictions and conditions.
10.21.03
Section 88 of the Customs Act, 1962 stipulates that the provisions of
Section 69 and Chapter X of the said Act shall apply to stores taken on board any
foreign going vessel or aircraft as stores (other than those to which Section 90
applies) as they apply to other goods.
10.21.04
When goods are entered for shipment to a foreign port or as
provisions, etc., for use on board a vessel proceeding to a foreign port, the
procedure is as follows: -
(a)
The owner of the warehoused goods will present a Shipping Bill in triplicate in
the prescribed form with the words “from Bond” written prominently in red ink
at the top of each copy to the Bond department.
(b)
The Bond officer will see –
(i)
That the goods are entered for shipment to a foreign port.
453
(ii)
Compare and record the particulars of goods entered for shipment
against the entries in the Bond Register.
(iii)
Endorse and initial the order in the Shipping Bill pertaining shipment of
the goods to the Assistant / Dy. Commissioner (Bonds) for signature.
(c)
After obtaining Assistant / Dy. Commissioner‟s orders permitting shipment ex-
Bond, the Shipping Bill is forwarded to the Export Department for numbering and
date stamping and the original Shipping Bill is detained here.
(d)
On receipt of the duplicate and triplicate of the Shipping Bills from the Export
Department the owner will obtain from the Preventive Department the services of an
Officer to supervise the removal and shipment.
(e)
The duplicate Shipping Bill is forwarded along with the EGMs after shipment
to Export Department. The triplicate Shipping Bills are received by Bond department
from the Preventive Department who will finally note in the Bond register the
particulars of shipment. In places where triplicate Shipping Bills are not filed, the
duplicate Shipping Bill after shipment of the goods is received in the Bond
Department from Export Department. The duplicate Shipping Bill is endorsed by the
Export Department as “compared in the EGM” The particulars of shipments are
entered in the Bond register.
10.21.05
Stores supplied ex-Bond to Government Vessels: Provisions and
stores including wines, and spirits may be shipped ex-Bond to the following users:
(a)
Ships of the Indian Navy irrespective of whether their destination is a foreign
port or otherwise.
[(R.D.) C.No.91(28)Cus 1/49, dated 12.4.1950]
454
(b)
Liquor and consumable stores may be supplied ex-Bond from the warehouses
maintained by the Airline companies subject to the condition that the aircraft is
proceeding direct to other foreign destinations. Further, such supplies will be
made only when the plane is taking off on an onward flight for a foreign
destination and will not touch an intermediate Indian Airport. The supplies will
be kept under seal until the plane takes off and an endorsement that “the
seals were found in tact at the time of departure” will be made by the Customs
Officer.
[Ministry
of
Finance
(R.D.)
Letter
No.
70(23)
Cus 1/54 Cus III, dated 22.8.1955 ]
(c)
Warehousing of goods imported under Savings Clause 3 (d) of the Foreign
Trade (Exemption from Application of Rules in Certain Cases) Order, 1993 should be
permitted only for (i) bonafide ships stores; and (ii) items like provisions, liquors,
cigarettes and tobacco. In no case should the imports of non-consumable items like
air-conditioners, refrigerators, tape recorders etc. be allowed.
[F. No. 3/5/66-Cus. VII, dated 23.5.66 and 16.6.1966]
10.22 Shipment of Liquid Fuel Under Section 88
10.22.01
The Oil Company will present in the Preventive Department the
Shipping Bill, with Bond number and date noted therein or an application
455
requisitioning an officer for supervising shipment. The Preventive Department will
obtain the Assistant / Dy. Commissioner‟s orders sanctioning the staff required.
10.22.02
The Shipping Bill will then be presented in the Bond Department for
admission and for putting up endorsement to obtain the Assistant / Dy.
Commissioner‟s orders for permission to ship the goods under Section 88 of the
Customs Act. The Bond Clerk will make an entry in the Bond register and assign an
issue number to the Shipping Bill. After the Assistant / Dy. Commissioner‟s orders
are obtained, the Shipping Bill will be forwarded to the Export Clerk to be dealt with
under usual procedure.
10.22.03
The Shipping Bill will thereafter be forwarded to the Preventive Officer
concerned, who, after bunkering is completed, shall verify the quantity with the Chief
Engineer‟s log book with that arrived at after measuring the tank and certify the
quantity verified on the Shipping Bill.
10.22.04
The Bond officer will note in the register the actual quantity bunkered
and transmit the Shipping Bill to the Export Department which will return the
Shipping Bill to the Bond department after the usual check with the manifest.
10.22.05
The entries in the register will then be completed and the register
submitted to the Superintendent for initials. The registers with the Shipping Bills will
thereafter be forwarded to the Audit Department for checking the entries.
10.22.06
When vessels in coastal run are to be bunkered from Bonded stocks,
the Oil Company shall in addition to presenting a Shipping Bill for the quantity of oil
required in the Export Section, file in the Import Department a ex-Bond Bill of Entry
456
for this quantity. Duty shall be collected before the oil is allowed to be pumped. After
bunkering, action should be taken for the recovery/refund of duty on any
excess/short shipped quantity.
10.22.07
The expression “any vessel proceeding to a foreign port” in Section 88
of the Customs Act, 1962 should not be construed so as to disallow shipment of
provisions or stores for use on board the vessel while in port before the
commencement of the outward journey. The concession envisaged would be
available when the vessel leaves an Indian port with a foreign port as its destination
regardless of it calling on other Indian ports enroute or passing through the Indian
waters for some time.
[F. No. 55 (16)-Cus.1/54, dated 11.10.1954]
10.22.08
There is no restriction on the quantities of Ex-Bond shipment under
Section 88 the Customs Act, 1962. The only case where restriction on the quantity of
goods sought as stores would be applicable is where the quantities are so large that
they cannot conceivably be intended for use as stores and/or there is reason to
suspect that these would be surreptitiously landed.
[F. No. 3/27/59-Cus III, dated 10.1.1969]
10.23 Waiving the Condition of Physical Warehousing
457
10.23.01
There are cases where after landing of goods in the Docks, the
importer seeks bonding of the goods, but before physically warehousing can take
place, he seeks clearances for exports or for home consumption or even removal
from the warehouse to another warehouse in another town. However, ex-post facto
approval of waiver of the requirement of physical warehousing at the port of
importation is not permissible.
[F. No. 473/16/88-Cus.VII, dated 15.6.1988]
10.23.02
In the following cases, Asstt./Dy. Commissioners of Customs may
consider granting waiver of physical warehousing with the approval of the
Commissioner, if necessary, ex-post-facto.
(i)
Merchanting trade i.e., goods imported for supply to other foreign
countries, which is permitted by the RBI as per Chapter 13 of the
Exchange Control Manual.
(ii)
Cases where duties are not collected i.e., stores, spare parts, fuel for
vessels etc. or “stores” as defined in Section 2(38) of the Customs Act,
1962.
(iii)
Equipment, machinery and raw materials for EOUs located outside port
city and in urgent need of equipment.
(iv)
Companies with manufacture-in-Bond permission under Section 65.
(v)
Bulky, heavy and dangerous and delicate items, which require special
handling or air-conditioning.
(vi)
Goods belonging to reputed companies that have urgent reasons for
immediate clearance.
458
10.24 Cancellation and Return of Warehousing Bond under Section 73
10.24.01
When all goods covered by a Bond executed under Section 59 have
been cleared for home consumption or exported or are otherwise duly accounted for
and when all amounts due on account of such goods have been paid, the proper
officer shall cancel the Bond as discharged in full, and shall on demand deliver it, to
the person who has executed or is entitled to receive it.
10.24.02
When a Bond is ripe for cancellation, all documents relating thereto
original into-Bond Bill of Entry, ex-Bond Bill of Entry and Shipping Bills which should
always be kept by the Bond department with the relative Bond, together with the
Bond Register, should be sent to the IAD.
10.24.03
Audit should immediately scrutinise the documents and the entries in
the Bond Register and, if these are in order, should impress the Department‟s stamp
on the Bond and against the entries in the Bond Register and initial the documents in
token of having audited them and return them to the Bond Department.
10.24.04
The Bond should not be cancelled by the Bond Department unless it
bears the IAD stamp duly initialed by the Audit officer.
459
10.24.05
Superintendent, Bonds, will personally check the Bond Register twice a
year in January and July and see there has been no undue delay in the disposal of
completed Bond, and report to the Assistant Commissioner of his having done so.
10.25 Bond File
(a)
A Bond file consists of –
1.
Bond under Section 59 of the Customs Act, 1962.
2.
Original into-Bond Bill of Entry.
3.
Original and duplicate ex-Bond Bill of Entry.
4.
Original Shipping Bill in respect of goods shipped to a foreign port and
Duplicate in case of goods removed to a Customs port.
5.
Papers relating to the discharge of the Bond under Section 67 of the Customs
Act, 1962.
6.
Bonder‟s application for removing part contents of packages for home
consumption or re-export or for operations under Sections 64 and 65 of the
Customs Act, 1962.
7.
Bonder‟s application for extension of the time limit for warehousing goods.
8.
Bonder‟s application for removal of goods under Section 67 of the Customs
Act, 1962.
9.
Re-warehousing papers in duplicate.
(b) In the case of intimation received from other ports regarding re-warehousing or
otherwise of the Bonded goods such papers should be filed separately if these refer
to more than one Bond.
460
(c)
Audit of Bond Files: Bond Files of the nature specified below should be
forwarded to the IAD through the Assistant Commissioner, Bonds. All other files
should be sent directly to the IAD by the Superintendent, Bonds, or the Preventive
Officer in charge of warehouses. Bond files should ordinarily be sent for audit within
two months from the date of last clearance from Bond.
(i)
Those containing inaccuracy of a serious nature or in which any document is
missing.
(ii)
Those containing ex-Bond Bills of Entry involving short or excess charge
above Rs.25/- in an individual Bill of Entry, and
(iii)
Those containing ex-Bond Bills of Entry involving short or excess charge
below Rs.25/- in an individual Bill of Entry due to incorrect particulars having
been furnished by the Bond Department when issuing them and detected at
the time of sending the Bond file for audit.
10.26 Irregularities in Clearance of Goods from Bonded Warehouse
10.26.01
On the basis of irregularities noticed in the past in respect of
warehoused goods, the following precautions may be taken by the concerned
officers to prevent misuse in the future:
(a)
The goods should be stored in Bonded Warehouses only after due
examination. Reverse of the Bill of Entry must confirm the veracity of the
declared description with the distinctive identification marks of the subject
goods.
461
(b)
At the time of actual removal of the goods from the warehouse, the declared
description of the goods recorded on the Warehousing Bill of Entry, should be
tallied with the description declared on the ex-bond Bill of Entry.
(c)
There should be regular audit and inspection by the senior officers and the
Customs House audit parties so that the nature, quantity, number and other
relevant particulars with reference to the concerned documents are verified.
The exercise could be once in six months for audit parties supported by
surprise checks by senior officer.
(d)
The records of bonded goods in the Customs Houses, as far as possible,
should be computerised.
(e)
It should also be made mandatory for the Central Warehousing Corporation
and other warehouses to submit status report regarding consignments
pending for one year and above. The position can then be cross checked in
the Customs House where the warehousing Bills of Entry originated.
(f)
Action under Section 72 of the Customs Act, 1962 must be initiated on expiry
of the warehousing period.
(g)
All cases where goods continue to lie in the warehouse after the expiry of
warehousing period should be specially taken up for scrutiny by the audit
parties and other checks in order to guard against deterioration, substitution
or any other unlawful removal.
[Circular No. 52/98-Cus., dated 27.7.1998]
10.27 Check List For Working Of Bonded Warehouses
10.27.01
The Directorate of Inspection & Audit, have drawn up and issued
Check Lists on various warehousing procedures for the guidance of the staff. These
462
check lists cover procedures from inspections to be carried out before issuance of
licence to auditing of documents.
10.27.01 Check list – I (Before a licence is issued):
(a)
Verify that the place where the warehouse is proposed to be licensed has
been notified as a warehousing station under Sec. 9 of the Customs Act,
1962.
(b)
The application for licence has been made in the prescribed form.
(c)
The no. of commodities proposed to be Bonded in each warehouse should
not exceed 5 or 6.
(d)
The warehouse building should be inspected and it should not be in the
residential area.
(e)
It should be a pucca building (brick-built)
(f)
If the warehouse is on the top-floor, then the terrace should be well and
strongly built.
(g)
All windows and sky lights should be well secured.
(h)
There should not be more than 1 door.
(i)
The door should be screwed and hinged from inside to prevent the fastening
being removed from outside.
(j)
The premises must be secured against theft, pilferage, or other risks and must
be easily accessible for the departmental officers for any inspection or checks.
(k)
The warehouse should be provided with adequate no. of fire extinguishers
and other equipment such as buckets of water, sand etc., for putting out fire.
(l)
The warehouse building should be inspected by a Superintendent.
(m)
A report on the condition of the building shall be prepared and the
questionnaire
duly
filled
in
should
be
submitted
to
the
Asst./Dy.
Commissioner.
(n)
The applicant shall give in writing his readiness to defray the expenses on
account of Commissionerate‟s establishment employed at the private Bonded
warehouse on a regular basis or occasionally.
463
(o)
The new applicants who are intending to store sensitive goods should
produce a solvency certificate (not just a reference or a confidential certificate)
from a scheduled bank of repute (other than a co-operative bank or a bank
which has operations limited to a city etc.) for a value of not less than Rupees
Fifty Lakhs (Rs. 50,00,000/-)
(p)
In respect of non-sensitive goods, the applicant should be solvent for Rs. Ten
lakhs (Rs,10,00,000/-)
10.27.02
(a)
Check list –II (Issuing of a licence and allied steps):
Licence for a private Bonded warehouse should not be issued if the
applicant‟s record is not clean and that the proprietor , or partner or any of the
Directors are involved in any of the Customs duty evasion /
smuggling
offences and have been subjected to penalty or
under the
other action
Customs or Central Excise Laws.
(b)
A licence shall be valid for one year and may be renewed annually.
(c)
Before renewal of the licence the check-list I may again be followed.
(d)
Before a licence is cancelled give one month‟s notice in writing to the
licensee.
(e)
If the licensee has contravened any provisions of the Customs Act, 1962 or
the Rules and Regulations or committed breach of any of the conditions of the
licence then the licence may be cancelled after giving reasonable opportunity
of being heard.
(f)
See that the “Proper Officer,” in relation to various functions to be performed
in respect of warehousing, is notified under Sec. 2(34) of the Customs Act,
1962.
(g)
Importer shall execute a Bond in the prescribed form.
(h)
The Bond may be for a single consignment or a general Bond.
464
(i)
In the case of a Bond for a single consignment the amount, for which the
importer shall bind himself, should be equal to twice the amount of duty
assessed on the goods intended to be Bonded. In respect of sensitive goods,
the licence should give a cash deposit or bank guarantee equal to 25% of the
duty liability for each consignment.
(j)
In the case of a general Bond the importer shall bind himself in such amount
not less than twice the amount of duty estimated on the likely quantity of
goods to be Bonded within a specified period.
(k)
After the licence has been issued and the Bond has been accepted the
importer can be allowed to Bond dutiable imported goods.
(l)
The licensee shall pay the cost of purchasing a strong lock for locking the
warehouse door.
(m)
One key of the lock shall be retained with the officer in charge of
administration in a sealed cover.
(n)
The other key shall be kept with the „Proper Officer‟ in charge of the
warehouse.
10.27.03 Check List – III (Examination and Bonding of goods):
(a)
Examine all packages before Bonding.
(b)
Compare
with
the
documents
received
from
the
dispatching
Commissionerate.
(c)
Send an acknowledgement for receipt of the goods to the dispatching
Commissionerate.
(d)
See that the goods are properly stocked.
(e)
See that the stock card is kept with each stock.
(f)
The importer has to file a set of into-Bond bills of entry.
(g)
Classify and assess the into-Bond Bill of Entry.
(h)
Hand over to the importer his copy of the Bill of Entry.
(i)
Do not allow similar type of goods produced indigenously or obtained locally
in the same warehouse.
465
(j)
The goods deposited in the warehouse should be fully insured by the
warehouse keeper against theft, pilferage, fire accidents, other natural
calamities, risks against rioting etc. at least for a value equal to the Customs
duty by a comprehensive insured policy drawn in the favour of the
Commissioner of Customs.
(k)
Always lock the door before leaving the warehouse.
(l)
Never hand over the key to the importer or any other person.
(m)
The key shall be handed over only to the officer-in-charge of administration or
to the „Proper Officer‟ in-charge of the warehouse.
(n)
Maintain a Bond register in the prescribed form.
(o)
Draw a summary in the Bond register at the end of each month showing the
no. of packages of each type of goods received in the warehouse, quantity of
each type delivered therefrom and the balance in stock.
(p)
Put your full signature with date under the summary.
(q)
Endorse on the duplicate copy of into-Bond Bill of Entry, the date and location
of the goods stored.
(r)
Empty cases shall not be allowed to be stored in the warehouse.
(s)
Empty cases shall be delivered to the Bonder under receipt on the reverse of
the into-Bond Bill of Entry.
(t)
Check the period of storage to ensure that they do not remain warehoused
beyond the period prescribed in Sec. 61 of the Customs Act.
(u)
If the warehoused goods are not removed at the expiration of the period,
issue demand for payment of the full amount of duty
chargeable thereon
and interest payable under Section 72 of the Customs Act, 1962.
10.27.04 Check List–IV (before sanctioning manufacture and other operations in
Bond):
(a)
The facility shall be sanctioned with prior approval of the Commissioner.
(b)
Facility shall be extended to export oriented manufacture units.
466
(c)
The total value of
goods manufactured by using imported materials is
significantly large.
(d)
The imported items shall not generally be similar to items produced
indigenously which may be used for making export goods (this may not be
applied to items which are technically identical e.g.copper)
(e)
Determine the number of officers of different cadre required to be posted for
adequate control and supervision of manufacture in Bond.
(f)
Ensure that the manufacture and other operations in Warehouse Regulations,
1966 as amended are followed.
(g)
The Asst./Dy. Commissioner shall also provide a detailed procedure
specifying manufacturing processes etc.
(h)
The procedure shall also prescribe the conditions to be complied with by the
manufacturer as stipulated in Sec. 65(1) read with Rule 5 & 6 of the
Manufacture and other operations in Warehouse Regulations, 1966 as
amended.
(i)
The procedure shall also include a proforma of the register in which detailed
accounts of all Bonded and other goods used in the manufacture are to be
maintained.
(j)
Prescribe a form of statement in which details of all Bonded and other goods
used in the manufacture and those remaining in stock are to be submitted.
(k)
In case such facility is extended to allow manufacture of goods from same
type of materials as the Bonded materials, which are import duty paid and/or
indigenous material in the same place, then (I) prescribe suitable conditions
for such facility; (ii)the conditions so prescribed shall include that the
manufacturing operations will not be carried out simultaneously;(iii) that
proper accounts for verification of goods manufactured from different
categories of materials i.e., (a) Bonded materials and (b) non-Bonded
materials are maintained.
10.27.05
Check List–V (Removal of goods from one warehouse to another):
467
(a)
Check that the application has been made in the prescribed form in duplicate.
(b)
Check the particulars in the application to ensure that they agree with the
entries in the Bond Register.
(c)
Submit the application to the proper officer for orders.
(d)
The proper officer shall require that the transport of the goods between two
warehouses in the same town is made under the supervision and escort of an
officer of Customs (the owner has to meet the cost of supervision and escort).
(e)
If the goods are to be removed to a warehouse in a different town, see that a
Bond in a sum equal to the amount of import duty leviable on the goods has
been executed by the person requesting the removal.
(f)
Check that the Bond has been furnished in the proper form.
(g)
Check that the terms of the Bond include that the person executing the Bond
undertakes to produce a certificate issued by the proper Customs officer at
the place of destination that the goods had arrived at that place.
(h)
Check that this term of the Bond also specifies the time (that is within 3
months or within such extended period as the Asst. / Dy. Commissioner may
allow) within which the certificate shall be produced by the person.
(i)
Check that the Bond is backed by sufficient surety or security or both as
accepted by the Asst. / Dy. Commissioner.
(j)
Check that the owner submits a Bond Shipping Bill in the prescribed form and
presents from along with the above mentioned form.
(k)
Check that the Shipping Bills contain all the necessary information and the
columns have been properly filled in.
(l)
Submit the documents to the Asst. / Dy. Commissioner for orders and
acceptance of the Bond.
(m)
Before allowing delivery of the goods note the clearance of the goods in the
godown register and on the duplicate Shipping Bill.
(n)
The goods shall be accompanied by a Customs Officer to the railway booking
office.
(o)
The Customs officer shall obtain the railway receipt.
(p)
Immediately on return to the office arrange to send the railway receipt with the
covering advice (in the prescribed form) to the officer to whom the goods
have been consigned; get the advice note signed by the proper officer.
468
(q)
See that the railway receipt and the advice note goes under registered post
with acknowledgement due.
(r)
Record the reference number of the advice note and date in the godown
register; also keep the acknowledgement receipt posted suitably in the
register.
(s)
In the case of transport by road verify that the carriers are of repute and
standing.
(t)
Seek the permission of the Asst. / Dy. Commissioner to allow transport by a
particular transport company.
(u)
Each package is sealed with wire and lead seal.
(v)
Record the fact of sealing and the lead seal number in the advice note
number.
(w)
Follow the checks listed at 1 to 18 above relating to transport by rail.
(x)
Keep a watch regarding the receipt of intimation of the arrival of the goods.
(y)
Issue a reminder if the intimation is not received in 2 to 3 weeks time from the
date of despatch and bring the fact to the notice of the Superintendent / Asst. /
Dy. Commissioner.
(z)
On receipt of intimation submit the Bond filed under Sec. 67 to the Asst. / Dy.
Commissioner for cancellation.
10.27.06
Check List–VI (Clearance of warehoused goods):
(a)
The importer shall present Bill of Entry in the prescribed form.
(b)
Check that the particulars of the goods given in the Bill of Entry agree with the
entry in the Bond register.
(c)
Note the quantity to be cleared in the register.
(d)
Note the original and duplicate „into-Bond‟ Bill of Entry, the issue number
below the Bond number entered on the document by the Bonder.
(e)
Reassess the ex-Bond Bill of Entry.
(f)
If the goods are tariff value goods, the rate of tariff value shall be the one in
force on the day of actual removal of the goods from the warehouse.
469
(g)
The rate of duty shall be the one in force as on the date of filing of ex-Bond
Bill of Entry.
(h)
Doubly check and make sure that the provisions of exemption notifications are
correctly applied. In case if doubt, get in touch with the concerned Custom
House.
(i)
After duty has been paid, get the „passed out of Bond‟ order from the „Proper
Officer‟ (designated for this purpose by the Commissioner under Sec. 2 (34)
of the Customs Act) on the duplicate copy of the ex-Bond Bill of Entry.
(j)
Give delivery of the goods, ensuring that only those covered by the ex-Bond
Bill of Entry are delivered.
(k)
After the goods have been delivered endorse the date and time of delivery on
the duplicate ex-Bond Bill of Entry and retain it with other records for
subsequent audit.
10.27.07
(a)
Check list – VII (Stock verification):
The Asst. /Dy. Commissioner shall verify the stocks every three months (in
case the volume of goods warehoused is very large, the period may be raised
up to one year with the concurrence of the Commissioner.
(b)
He shall satisfy that the contents of packages are in tact by examining 5% of
the packages but limited a maximum of 25 packages of each consignment.
(c)
In the case of cargo in bags, such as cement, the check shall be effected by
probing the bags.
(d)
Verify that the goods agree with the description given in the corresponding
into-Bond Bill of Entry.
(e)
The stock shall be challenged and the actual number of packages found in the
godown recorded in stock challenge register under signature with date.
(f)
The Bond register and other records shall also be verified and signed.
(g)
A report on the finding shall be submitted to the Commissioner for information.
470
10.27.08
(a)
Check list – VIII (Audit of documents and registers):
All documents and register relating to the Customs Bonded warehouse shall
be audited regularly by an audit party (preferably once every month)
(b)
All duplicate ex-Bond bills of entry shall be forwarded to the Internal Audit
Dept. of the major Custom House through which the goods were imported for
post audit in batches once every month (address it to the Asst. / Dy.
Commissioner, Internal Audit Dept. of the Custom House) by registered post.
(c)
Ensure that audited ex-Bond bills of entry are received back within a
reasonable time so as to enable you to issue demands within time in case of
any short-levy brought out as a result of audit scrutiny.
(d)
In case of delay in the receipt of audited documents, remind the Custom
House for prompt return of the documents.
10.28 Duties
of
Preventive
Staff
Deployed
In
Bond
Section/Bonded
Warehouses
10.28.01
Bonded goods have to be under Customs control all the time till
clearance. This Customs control is monitored by the Custom House through the
Preventive Staff who are posted at these Warehouses and also in the Bond
Department, to oversee the day to day functioning of these warehouses and
movement of Bonded goods to / from them. Preventive Officers are posted as Bond
officers in Public / Private Bonded Warehouses, and Superintendent (Preventive) incharge of such warehouse administer supervisory control over the functioning of
these Bonded warehouses.
471
10.28.02
Superintendent (Preventive) incharge Bonded warehouses: The Bond
Superintendent (Preventive) in charge of the Bonded warehouse should pay frequent
visits to Public and Private Bonded warehouses and should:
(a)
Inspect the stock of Bonded goods in the warehouse by challenging the stock
with the Bond Register and vice versa and in token of his check should sign
the checked entries in the Bond Warehouse Register and the stock cards.
(b)
Check the Bond Bills of Entry on which the goods have been warehoused into
Bond.
(c)
Check the ex-Bond Bills of Entry for the goods cleared for home consumption
on payment of duty, if any,
(d)
Check ex-Bond Shipping Bills on which Bonded goods are proposed to be
shipped, as ship‟s stores or Bond cargo.
(e)
Wherever necessary he should examine the ex-Bond goods, in the Bonded
premises or at the Gates, which are being taken out for shipment to docks;
and should ascertain that the same are being properly removed from the
Bonded warehouse and escorted by the Officers as laid down in the rules.
(f)
He should also check the expiry dates of the operating Bonds of various
Bonded items; and submit to Assistant Commissioner / Bonds, the information
regarding cancellation of Bonds according to their tenures.
(g)
He should record in his diary all the particulars of such checks carried out. If
any irregularity is noticed, the same should be recorded in the Station Diary,
and matter reported to the Assistant Commissioner /Bond and to the
Asstt./Dy. Commissioner of Customs (Preventive).
10.28.03 Preventive Officer posted at Private Bonded Warehouse:
(a)
The Officer should check that the date on or before which the goods are to be
passed into Bond, has not expired.
472
(b)
The officer shall check the packages to see that they are intact and the marks
& nos. tally with those entered in Bill of Entry. If any packages intended for
deposit in a private warehouse are found in broken condition, the work should
be stopped and a report has to be submitted to Appraising Department for
orders. After necessary action has been taken by the Appraising Department,
the goods should be allowed for warehousing.
(c)
After depositing the goods in the Bonded warehouse, the Officer should
obtain receipt from the Bonders or the warehouse keepers, on the reverse of
the Bill of Entry, in token of having received the goods in the warehouse and
should endorse the Bill of Entry as ―Supervised
the
removal
……………………………….to
of
………………………………………..from
M/s……………………..
Pvt.
Ltd.
Bonded
warehouse and their actual storage therein‖.
(d)
The officer will then make suitable entries in the Bond Register maintained for
the purpose and also in the Stock Card.
(e)
The Bill of Entry should be retained by the officer to be forwarded through
transit book to the Bond Deptt.
(f)
He shall supervise removal from one warehouse to another and shall escort
goods from the warehouse to Railway Booking office for being despatched in
Bond by Rail.
(g)
He shall supervise manufacturing operations, under section 65, where such
operations are permitted and carried out.
(h)
He shall supervise scrutiny, sorting, re-packing, and bottling in Bond when
sanctioned by the A.C. Bond Deptt.
(i)
He shall escort goods from any warehouse to the place of shipment for the
purpose of being exported under sec. 69 and 88 of Customs Act, 1962.
(j)
In all cases where records of warehouse are being maintained by the
Preventive Officer, care should be exercised not to release warehoused
goods after expiry of warehousing period.
(k)
Whenever there are changes in Tariff valuation or rate of duty, the Preventive
Officer supervising the delivery of the goods will hold the delivery pending
473
recovery of excess duty, if any, due to such changes, between the date of
payment of duty and actual removal of the goods from the warehouse.
(l)
The Preventive Officer supervising the removal of Bonded goods shall see
that the Department has properly processed the Shipping Bill. He should see
before shipment of the goods that the conditions of the packages are in good
order. If any package is broken or found to be tampered with, he should open
and examine the packages in presence of shipper or his representative,
prepare list of contents thereof and note therein the condition of the package
and should sign the list. The shipper or his representative should also sign the
said list. The list with report should be forwarded to Bond Deptt. through the
Bond Superintendent.
(m)
The Preventive Officer posted in the Bonded warehouse should prepare and
forward through Supdt. (P) / Bond, such periodical statements as required by
the Bond Department, like total quantity and value of goods Bonded, details of
expiring / expired Bonds, details of active Bonds, amount of duty / interest
involved, etc.
*****
474
CHAPTER – ELEVEN
11.
IMPORTS & EXPORTS UNDER CARNET / TRIPTIQUE
1.
INTRODUCTION
India has since long been one of the major tourist destinations in South East
Asia. Thousands of foreign nationals from countries all over the world visit India
every year for legitimate non-immigrant purposes, such as touring, recreation,
sports, health, family reasons, study, religious pilgrimage or business. Some of these
foreign tourists intend to travel the length and breadth of the country in their own
vehicles and with their own travel and other equipment. For this, they often carry
along or travel on their automobiles within the country throughout their stay in India.
Besides this, India has also emerged as a big participant in the international
trade in the last few decades. The exports of goods and services from and imports
into the country have a sizeable presence in the global commercial forum. In this
sector too, there has been a marked increase in the diverse class of business
travelers to and from India. For the purpose of display/ demonstration, procure
orders for their products, personal & professional usage, they often have to
temporarily import / export certain goods into and from India.
In order to facilitate the temporary importation/export of private road vehicles,
professional equipment, display material, samples, etc., many countries in the world,
through conventions, have resolved to allow and have devised procedures for the
same. Modalities of clearances under these two procedures are included in the
below mentioned two conventions to which India is a signatory.
The two distinct documents required in this regard are – 1) Carnet de
Passages En Douane (CPD) for temporary import of private road vehicles and 2)
the Admission Temporaire / Temporary Admission Carnet for temporary import of
goods for display, etc.
1.1
CARNET DE PASSAGES EN DOUANE (CPDs)
The Carnet de Passages En Douane (CPDs) [ often shortened to Carnet
(pronounced “kar-ney”)] is a travel document facilitating temporary admission of
475
private road vehicles into India by the tourist free of duty. It is an integral part of the
United Nations Vehicles Conventions of 1954 and 1956 as amended in 1992
(Annexure I). This is known as International convention on “Temporary Importation of
Private Road Vehicles”. The CPDs are
issued by the authorized Automobile
Associations and administered, through their member associations world-wide, by
two Geneva based non-profit and non-governmental organizations - Alliance
Internationale de Tourisme (AIT) and Federation Internationale de l‟Automobile
(FIA). They provide guarantee/security for the payment of any Customs Duty and
import taxes chargeable, should the vehicles not be re-exported out of the country
wherein they were admitted.
Persons claiming this concession should normally be resident outside India, who,
during their temporary visit to India should not take up any paid employment or
any other form of gainful occupation.
Carnet and Triptique are identical in purpose, except that the Triptique is
meant for a single country while the Carnet de Passages En Douane is for more than
one country.
The guaranteer for Carnet de Passages En Douane (CPDs) / Triptique in
India is the Federation of Indian Automobile Associations having their own member
Associations in major Indian cities.
1.2
ADMISSION TEMPORAIRE/TEMPORARY ADMISSION (ATA) CARNET
In December 1961, to encourage world trade, the Customs Co-Operation
Council [now World Customs Organization (WCO)] adopted , the "Customs
Convention on the ATA Carnet for the Temporary Admission of Goods". The purpose
was to reduce the obstacles caused by varying Customs regulations of the various
countries. The initials "ATA" are an acronym of the French and English words
"Admission Temporaire /Temporary Admission."
The ATA Carnet is an international Customs document that permits duty free
and tax free temporary import of goods during its validity period. The ATA Carnet
covers Commercial samples, professional equipment, goods for presentation or use
at Trade fairs, shows, exhibitions and the like. The facility is available to business
476
and sales executives, exhibitors at trade fairs and traveling professionals like film
crews, architects, artists, engineers, entertainers, photographers sports persons, etc.
The guaranteer for ATA Carnet in India is the Federation of Indian Chamber
of Commerce and Industries.
2.
IMPORT/EXPORT OF MOTOR VEHICLES UNDER THE CARNET DE
PASSAGES EN DOUNE
Temporary import of private road vehicles into India by the tourists is allowed
under the provisions of the Carnet Convention as India is a signatory to it.
Government of India has issued Notifications, as amended from time to time,
enumerating the terms, conditions, exemptions and modalities from Customs viewpoint in respect of such imports. Such imports are also exempt from Import Trade
Control restrictions in terms of Foreign Trade (Exemption from
application
of
Rules in certain cases) Order, 1993 under the Foreign Trade (Development &
Regulation) Act, 1992.
2.1
VEHICLES ETC.- IMPORTED BY TOURISTS UNDER TRIPTYQUE OR
CARNET DE PASSAGE.
The Central Government, vide Notification no. 296-Cus. dated 02-08-1976
has exempted goods specified in column (2) of the Table below when imported into
India, from the duty of customs and the additional duty leviable thereon to the extent
indicated in the corresponding entry in column (3) of the said Table, subject to the
conditions specified in the corresponding entry in column (4), thereof.
TABLE
Sl
Name of the goods
of Conditions of Exemption
Exemption
No
(a)
1
Extent
Vehicles
as Whole
defined in Article 1 Duty
of
the (1) The importer shall:
of (a) be a member of an Automobile
477
of the Convention.
(b)
Customs
Club or Association belonging to the
and leviable thereon Federation of Alliance Internationale
parts under the First De Tourisme;
Fuel
component
in Schedule to the (b) produce to the proper officer for
Articles 3 and 4 Customs Tariff the purpose of the same being duly
respectively of the Act, 1975 (51 of signed and stamped by him the
1975) and the triptyque or carnets de passages-enConvention.
referred
to
Additional Duty douane issued by the Alliance
leviable thereon Internationale De Tourisme in the
under Section 3 form approved and issued to him by a
of
Act.
the said Club or Association guaranteed by the
Federation
of
Indian
Automobile
Association and in respect of which
all the rules and conditions relating to
triptyque or Camets de passages-endouane have been
complied with;
and
(c) satisfy the proper officer that the
vehicles and component parts, which
he has imported, correspond in all
respects with those described in the
triptyque or camets de passages-endouane and for this purpose produce
the said vehicles and component parts
for
examination
and
record
of
particulars by such officer.
(2) The period of retention of the
vehicle in India does not exceed six
months:
Provided that where a vehicle
imported under triptyque or carnets de
passages-en-douane is exported out
478
of India and is re-imported within the
period of six months from the date of
its exportation from India, then for
the purpose of determining the total
period of retention of the vehicle in
India after such reimport will be added
to the period of its
retention in India
after first importation.
Provided
Central
further
that
where
Government
or
the
the
Commissioner of Customs is satisfied
that it is necessary in
the public
interest so to do, it may extend the
period of six months by a further
period of six months.
(3) Generally subject to the provisions
of the Convention.
2
Vehicle
(including Whole
cornpo-nent parts)
of
the (1) The vehicle is garaged, except
Duty
when it is being repaired in a premises
referred to in the of Customs
approved by the Commissioner of
Convention which is leviable thereon Customs under a double lock, one of
permitted
to
imported
be under the First
in Schedule
accordance with the the
the owner and the
to Customs, provided that where the
Customs holder of the temporary importation
conditions specified Tariff Act, 1975 documents
against
number
and
serial (51
1
which,
other of the
or
of accompanying
the
him
or
person
his
family
above 1975), and the members is hospitalized then this
on Additional Duty condition shall not apply.
account of accident leviable
(2) The vehicle is re-exported before
requiring repairs of thereon
under the expiry of six months from the date
3 of of its importation into India extended
the vehicle or due to
Section
the death or illness the said Act.
by
the
period
of
garaging
or
479
of the holder of the
hospitalization referred to in condition
temporary
(1) above.
importation
documents,
or
a
person
accompanying him
or a family member,
is not exported out
of India within six
months
after
the
date of importation
3
Vehicles
and So much of the The holder of the carnet continues to
component
parts Duty of customs re- main in India during the period of
referred to in the and Addi-tional retention of the vehicle in India.
Con-vention,
other Duty as is equal
than those specified to the amount of
in serial number 2 drawback
above,
which
permitted
to
are calcula-ted
be taking
by
into
imported in accord- account the use
ance
with
the of
the
vehicle
conditions specified from the date of
against serial no 1 its first entry into
above
and
which India to the date
are expo-rted out of on
India
after
months
the
six vehicle is finally
and re-exported
within one
the
which
date
year of
of
importation.
Explanation. - In this notification "Convention" means the Customs Convention on
the Temporary Importation of Private Road Vehicles.
2. Nothing contained in this notification shall apply to -
480
(a) legal persons referred to in article 1(e) of the Convention;
(b) persons normally resident outside India/ who on the occasion of temporary
visit to India take up paid employment or any other form of gainful occupation.
2.2
ADMISSIBILITY OF IMPORT/EXPORT OF TOURIST VEHICLES
In terms of India‟s Foreign Trade Policy, imports/exports under the Carnet are
free from Import Trade Control restrictions provided the terms and conditions
specified in the respective international conventions are not violated by the
importers/exporters.
a)
In terms of Section 3 (o) of the Foreign Trade (Exemption from application of
Rules in certain cases) Order, 1993, vehicles as defined in Article I of the Customs
Convention
on
the
Temporary Importation of Private Road Vehicles or the
component parts thereof referred to in Article 4 of the said
Convention and
which are exempted from payment of customs duty under the notification No. 296
dated the 2nd August, 1976:
The conditions for such import are that
(i)
such vehicles or component parts are re-exported within the period specified
in the said notification or within such further period as the Customs authorities
may allow;
(ii)
the
provisions of
De- Passage"
permit
the
said notification or of the "triptyque or Carnet-
are not contravened
in relation
to
such vehicle or
component parts;
Provided further that nothing contained in this item shall prejudice the
application to the said vehicles or component parts of any other prohibition or
regulation affecting the import of goods that may be in force at the time of import
of such goods;
b)
Further, In terms of Section 3 (o) of the same statute, goods imported
temporarily for display or use in fairs, exhibitions or similar events specified in
Schedule I to the notification No. 157/90-Cus. dated the 28-03-1990 against ATA
481
carnets
under the
Customs Convention on the ATA Carnets for temporary
admission of goods.
The conditions being that
(i)
such goods are exported within a period of six months from the date of
clearance or such extended period as the Central Government may allow
in each case; and,
(ii)
the provisions of
the
said notification or of the ATA convention are not
contravened:
Provided further that nothing contained in this item shall prejudice the
application to the said goods of any other prohibition or regulation affecting the
import of goods that may be in force at the time of import of such goods;
2.3
FORMAT OF THE ―Carnet de Passages En Doune‖
The Automobile Associations in the form approved by Alliance International
De Tourist issue Carnet and each booklet bears a distinct serial number. The back
cover shows the particulars of the subject and bears the signatures of the importers
and officials of the issuing Automobile Association.
This booklet consists of a
number of sheets showing the name of the Carnet holder, the particulars of vehicles,
Engine Number, Chassis Number, and Registration Number, value of the vehicle
and validity of the Carnet. It is in French/English language.
Each sheet of document is divided in three parts, Part I is called ―Volet d‘
Entree‖ which should be signed by the dealing Customs Officer on import and be
retained at the port of importation. Customs House reference number should be
shown in the lower portion of Part II called ―Volet de Sortie‖. Import endorsement
should also be made in the upper half of Part III, called Souche, at this stage.
At the time of departure, the ―Volet de Sortie‖ should be signed and retained
by the Customs formation from where the vehicle has been re – exported out of India
and subsequently should be forwarded to the Custom formation from where the
vehicle entered into India, to be matched with the ―Volet D‘ Entree‖ and endorse
exit particulars in the lower half of sheet Souche. This part of the sheet is bound in
the Carnet and serves as the owner‟s proof of entry and exit of the vehicle. A
separate sheet should be used for each entry / exit.
482
The Carnet de Passage en Douane is valid in India for a period of six months
from the date of importation. If the validity period of the Carnet expires earlier than
six months of the import of the vehicle, its validity can be extended to cover six
months by an authorized Automobile Association in India.
2.4
ISSUE OF NEW CARNET FORMS
I am directed to say that Automobile Association of Upper Indian have informed
that Federation of Indian Automobile Association will continue guaranteeing the
AIT/FIA Carnet-de-passage, in new format,1 a specimen copy of which is enclosed
and to request that all field formations under you may be instructed to get
themselves familiarised with the new document for smooth acceptance and to avoid
confusions or inconvenience to the holder of such Carnets visiting India.
[Circular No. 44/95 dated 1/5/95 from F.No. 575/2/95- L. C. ]
[
2.5
Note
:
the
format
has
not
been
printed
here]
PROCEDURE FOR IMPORT
On arrival in India, the importer of Vehicle should produce a valid Carnet /
Triptique issued by one of the approved Automobile Associations abroad.
The importer of the vehicle is required to complete particulars in form „X‟ and form
FT (Annexures II & III). These forms shall be registered and particulars checked
with reference to the Passport and Carnet.
The File shall then be forwarded to Intelligence Section along with the
Passport to verify any information against the tourist or the vehicle. Incase, any
information of smuggling is received, the Intelligence Staff shall examine the vehicle
in the light of such information.
In case, no such information exists, suitable
endorsement shall be made by the Intelligence Section.
The vehicle shall then be examined by the dealing Customs Officer in the light
of particulars shown in the Carnet Book. Extra fittings if any, shall be shown in the
form „X‟ and “Volet De Sortie” portion.
While examining the vehicle, all the possible places of concealment for
smuggling of contraband goods should be checked thoroughly.
483
After examination, the dealing Customs Officer shall submit the examination
report along with his comments to the Deputy/Assistant Commissioner and obtain
orders for releasing or otherwise the vehicle under Carnet procedure. In case of
additional fittings like Stereo, Refrigerator, etc. other than those mentioned on the
Carnet, specific orders may be obtained to release the same under an undertaking /
or Bank Guarantee according to the circumstances of the case.
Prior to release of the vehicle, the dealing Customs Officer shall endorse the
Passport, Volet de Entree, and “Souche” of the Carnet de Passage suitably and
retain the Volet de Entrée in file.
While endorsing Passport, special care shall be taken to indicate:a) Carnet number and registration number of the vehicle
b) The last date expiry of validity of the retention period of the vehicle.
c) Probable place of last port of call in India prior to final exit of the vehicle.
and to make sure that the contact or permanent addresses of the Tourists are
obtained.
After obtaining orders for release from Deputy/Assistant Commissioner, the
dealing Customs Officer shall make suitable endorsements on the form „X‟, Carnet
de Passage and Passport for clearance of the Vehicle and advise the Gate Officer to
pass out the vehicle. He shall also transcribe all relevant particulars of vehicle and
Carnet and the name and other details of the Tourist and his journey on the Carnet
Register maintained by him, and make endorsement of case file number, date of
release order and place of importation on the last column of “Volet de Entree” and
handover the Carnet and Passport to the tourist or his agent and obtain his signature
on file in token of having received the same. The Gate Officer shall pass the vehicle
and return the „X‟ form and Volet de Entree to the Carnet Officer.
FORMATS OF FORM ‗X‘ AND FORM ‗FT‘
FORM ‗X‘
Form „X‟ (Annexure II) has a function like a Bill of Entry in which
the tourist gives a declaration to the effect that he will re – export the vehicle within
its permitted retention period, failing which he would be liable to action under the
provisions of the Customs Act. 1962. On the reverse of the Form „X‟ there is a
484
column where the model, year of manufacture, period of use till the date of
importation, mileage, etc., of the vehicle are to be shown for the purpose of
valuation. In case, the vehicle is coming by road, then names and nationalities of
other occupants are to be indicated. There is also a column for the remarks of
Intelligence Section.
FORM ‗FT‘
The form „FT‟ (Annexure III) will have to be filled in by the
tourist indicating all the particulars of the vehicle imported. This has to be done also
for the purpose of road taxation under motor vehicles rules or similar rules.
CARNET REGISTER
After the clearance of vehicle suitable entry shall be made in the Carnet
Register and the Carnet Register shall be submitted to Asstt./Dy. Commissioner for
his approval after filling the columns of the Carnet Register.
FORMAT OF CARNET REGISTER
Sr. No.
Particulars
Particulars
Carnet
Particulars
Particulars
A.C.‘s A.C.‘s
& Date
orders
of vehicle of Carnet
8
of the
orders of
of vehicle of re-export
1
Value
2
of
re-export
tourist
import
3
4
5
6
7
485
A separate Carnet Register shall also be maintained by the Customs Officer
(Carnet) for those vehicles imported at Customs Port other than the port of clearance
and such cases shall also be registered by the concerned clerk in the Baggage
section.
2.5.3 NOTING OF ‗X‘ FORM IN IMPORT DEPARTMENT
The Officer in charge of Carnet of Baggage Section shall get the form „X‟
noted in the Import Department so that I.G.M. shows that the vehicle has been
cleared on Carnet procedure.
He shall send the case file for provisional audit to Internal Auditor after
clearance of the vehicle under Carnet Procedure on importation.
[D.R.I Letter F. No. 25/23 INT/75 dated 03.07.1974]
2.5.4 PASSPORT ENDORSEMENT
a ) The Passport of a Passenger who imports a car under the “Triptique”
concession shall be endorsed with a capital „C‟ and the entry signed in full by the
dealing Customs Officer at the port of entry. Due care for such compliance will be
necessary in the cases where the car arrives either before or after the arrival of the
passenger himself. It will be necessary to find out at the time of departure of the
passenger importing the car under the “Triptique” concession, whether he has
already exported the car or is leaving the same behind. If it is found that there is no
justifiable reason for the passenger leaving his car behind, the Custom House should
ascertain full particulars of proposed shipment of the car from the passenger or
present location of the car as the case my be and send prompt report to the port of
clearance giving the following information.
1.
Full name of the passenger,
2.
Make and Registration number of the Car
3.
Port of entry and date
4.
Particulars of shipment (if the car is already shipped),
Or,
486
5.
Full address where the car is located and reasons for retention after the
owner‟s departure.
[ M.F. (DR) letter F. No. 8/8/58 – CUs. VI dated. 09.11.1962 ]
b ) When a Vehicle is cleared under the Carnet de Passages En Doune /
Triptique, the tourist‟s Passport shall be endorsed in indelible ink for having cleared a
vehicle under the said procedure. Such endorsement on the Passport should also
indicate the exact date by which the vehicle is to be finally re – exported out of India,
so that the tourist does not plead ignorance of the need to re-export within 6 months.
The tourist‟s Passport shall also be endorsed with a capital „C” and the entry be
signed in full by the Customs Officer allowing clearance.
[Ministry‟s letters F. No. 8/10/60–Cus. V dt. 11.10.60 and F. No. 575/66 – 71 Lc II
dt.19.09.71]
2.5.5 MEASURES FOR PREVENTION OF ABUSE OF CARNET SYSTEM –
a)
In case where the car is imported in advance of the passenger, Custom
House should take general precaution to see that the car is not used by
unauthorised persons pending the arrival of the passenger. It is, however, certainly
not the intention that any complicated procedure like taking of bond / guarantee of
garaging under Customs supervision, should be prescribed in this behalf.
b)
No alteration of any details of the vehicle shown in the Customs Carnet
should be permitted unless such alteration is considered by the Customs
Commissioner to be of “bonafide” nature and is accepted by the Carnet issuing
authority or is covered by a specific guarantee from the Guaranteeing Association.
c)
No vehicle which has been first registered abroad and its registration papers
cannot be produced should be passed under the triptique system.
d)
When passenger leaves the country without the car, an immediate intimation
should be sent (by the port of passenger‟s departure) to the port/and Customs
Station where the car was imported so that the necessary action can be taken
without waiting for the expiry of the period of validity of the Carnet, to see that the car
is not left behind.
487
[ M.F. DR No. 8/10/61/Cus.VI dated. 07.04.61 inst. 11/61-Cus. VI ]
2.5.6 IMPORT OF TOURIST BUSES
In the interest of tourist promotion, triptique concession may be granted to the
tourist vehicles viz. tourist buses, coaches and trucks etc. subject to the following
conditions:
(i)
The vehicle should be covered by a valid Carnet or a triptique issued by the
Association affiliated to one of the recognised automobile clubs or institutions,
an international Registration Certificate for motor vehicles and nationality plate.
(ii) The driver should possess an international driving permit and valid third party
policy insurance “Green Card”.
(iii) All the occupants of the vehicles (excluding the driver and a legal guide
approved by the tourist Deptt.) should be bonafide tourists and able to produce
proof of residence outside India.
(iv) The vehicle should not be used for commercial purposes within the country but
this should not bar any passenger (s) from leaving the vehicles in India nor
should it prevent the organisers of the Cost tour from picking up tourist
passengers in India for transporting them out of the country, the points where
passengers are being discharged and new ones picked up for the return portion
of the journey being determined beforehand.
(v) The vehicle should be re – exported within the period stipulated in the
triptique/Carnet, failing which action should be taken.
[ M.F. (D.R) letter F. No. 8/8/58-Cus. VI dated. 17.10.1960 ]
2.5.7 IMPORT OF MOTOR VEHICLE UNDER CARNET/TRIPTIQUE BY OTHER
THAN THE CARNET/TRIPTIQUE HOLDER
Importation of Motor Vehicle under Triptique procedure by a person other than
the holder of Carnet may not normally be allowed.
But in exceptional bonafide
cases, the Commissioner in his discretion may extend this facility provided the actual
importer is otherwise entitled to the triptique concession. It is also subject to his
holding a proper authority from the holder of the Carnet/triptique. The Federation of
Indian Automobile Association, Bombay or similar authorised Association should
488
also give a specific guarantee that although the vehicle has been imported by a
person other than the holder of triptique/Carnet, the Association Guarantees the reexport of the vehicle in time, failing which they would be liable to pay duty leviable
thereon.
[ M.F.(DR) No. 15/11/63-LC II dated. 08.10.1963
]
2.5.8 TEMPORARY IMPORT OF MOTOR VEHICLE OTHER THAN
CARNET/TRIPTIQUE PROCEDURE
a)
In case of foreign tourists who want to bring motor vehicles into India
temporarily on their way to other countries but who can not produce any
Carnet/Triptique due to the circumstances beyond their control, the concession of
duty free importation on the motor vehicles will be extended to them on ad-hoc basis
provided:(i)
they give valid reason for non-production of Triptique papers:
(ii)
their cases are strongly supported by either Indian Missions abroad or
Missions of their countries in India and
(iii)
they also produce an assurance from the Missions of their country in India or
a suitable Bank Surety for re-export of the vehicle within 2 months of the date of
importation or on failure, for payment of duty fine and/or penalty leviable on the
vehicle.
Non-possession of Triptique due to circumstances beyond the control of
tourists is elucidated as follows:(i)
In some countries there is no organization competent to issue documents.
(ii)
In some countries motor cycle are not treated as motorized vehicle requiring
registration.
(iii)
Some Associations stipulate, apart from membership, a minimum residence of
years in the country which may not be possible to satisfy for a tourist.
[ M.F. (DR) letter F. No. 15/65/63-LC II dated 15.01.1964 ]
489
b)
The Commissioners may in their discretion extend the facilities of clearance of
vehicles imported without Carnet to the tourist on the aforesaid conditions. The form
of Bond in such cases should clearly provided for re-export of the vehicle within a
given period not exceeding 6 months or such extended period as may be permitted
by the Commissioner and should also further stipulate that during its retention in
India the use of the vehicle by the tourist shall be subject to exactly the same
limitations as apply to a vehicle imported under the Convention on the Temporary
Importation of Private Road vehicles. With the aforesaid limitations any extension of
the period fixed as on date for re-export of the vehicle should be considered by
Commissioner on merits as would have been done if the vehicle had in fact been
imported under the regular Carnet.
[ M.F. (DR) F. No. 15/87/64 LC I dated 26.10.1964 ]
2.6
EXTENSION FOR THE RETENTION PERIOD OF THE VEHICLE
The retention period of a vehicle imported under Carnet can be extended in
exceptional cases on grounds of Force Majeure such as serious accident to the
vehicle, death or illness and hospitalization of the Carnet holder or any
accompanying family member, natural calamities, etc. In such cases, the tourist
should approach the nearest Customs authorities before the expiry period of the
Carnet with supporting documents augmenting his/her request.
2.6.1 POWERS OF EXTENSION OF RETENTION PERIOD
a)
The power to extend the Retention period of vehicles brought under
Carnet Procedure vests only with Central Government in terms of the provisions of
notification No. 296 dated 02.08.76 wherein it is stated that the Central Government
if it is satisfied that it is necessary in the public interest so to do may extend the
retention period of initial 6 months by further period of 6 months. The Commissioner
of Customs do not enjoy the powers of extension retention period beyond initial 6
months.
[ Ministry‘s Letter F. No. 575/62/79-LC II dated 18.02.81 and dated 01.06.1981 ]
b)
It is directed to say that in adherence to the Customs Convention of
Temporary Importation of Private Road Vehicles, Notification No. 296/76-Cus., dated
490
02.08.1976 has been issued. Vide said Notification any person, who is normally not
a resident of India can bring a vehicle duty-free for a period not exceeding six
months on the strength of a carnet. Further extension upto a maximum period of six
months can be granted by the Central Government in the public interest.
2.
With a view to decentralise decision making for expeditious decisions on the
requests of tourists for extension of retention period of vehicles brought under
carnet, it has been decided that the power to grant extension may also be exercised
by the Commissioners of Customs. Accordingly notification 160/94-Cus. has been
issued on 08.08.1994.
3.
It has also been decided that the Commissioners shall exercise the powers in
the following situations:
(a) Prolonged illness/death of the tourist or close relative rendering the tourist
unable to re-export the vehicle;
(b) Damage/accident to vehicle necessitating repairs; and
(c) Requirement of vehicle for visiting historical/tourist interest places.
[ Ministry of Finance (Department of Revenue) letter F. No. 575/14/93-L.C. dated
27.08.1994]
For allowing any extension, it is necessary that Carnet should be valid till such
time or the tourist gets the validity of the Carnet extended by Guaranteeing
Association and also Guaranteeing Association agrees to extend the Guarantee till
such time.
2.6.2 VALIDITY OF THE CARNET TO BE EXTENDED TILL THE EXPIRY OF THE
RETENTION PERIOD
Even in cases where the unexpired portion of the validity period of the Carnet
is less than 6 months at the time of importation of the car, the car may be allowed to
be retained for 6 months, provided that the validity of the Carnet is suitably extended
and the liability during such extended period is assumed by Guaranteeing
Association.
In all such cases where, retention of car for 6 months under the
Triptique concession will run beyond the original validity of the Carnet, the Custom
491
House must take necessary action to ensure that the validity of the Carnet is
expended.
[ M.F. (DR) letter F. No. 8/10/60 – Cus. VI dated 11.10.1960 ]
2.6.3
RETENTION OF CAR BEYOND THE PERMITTED PERIOD
There are tourists who had imported cars under the triptique procedure and
who subsequently tried to obtain import licence for permanent retention of their cars
in India and while his application for import licence were under consideration, the
cars continued to be used by them. Irrespective of the outcome of the application of
Import licence, the Customs Authorities concerned should seize the car immediately
after the expiry of the permitted period of the Triptique / Carnet so that the
concession is not abused in case of rejection.
However, confiscation of the car may be kept in abeyance, till a decision
regarding Import Licence for the car is taken by the Chief Controller of Imports and
Exports*. Since the duty will have to be paid even if the car is finally retained in
India, or re-exported out of India after the expiry of the permitted period under
triptique, action on that account need not be delayed.
[ CBR Letter No. 95/159/62 – LC II dated 20.12.62 and 26.09.1963 ]
* ( now Director General Foreign Trade )
2.7
PROCEDURE FOR RE-EXPORT
The tourist or his representative shall file a Shipping Bill for export of motor
vehicles imported under Carnet de Passages En Doune / Triptique in the Export
Department.
In case of motor cycles which were originally imported under the
Carnet de Passages En Doune / Triptique and are shipped as unaccompanied
baggage during the valid period of the Carnet, the Shipping Bill can be dispensed
with.
The Export Department, after the necessary processing shall send the
Shipping Bill to the Intelligence Section for „No Objection‟ (i.e. verification of
information, if any). At the time of re – export of the vehicle, the dealing Customs
Officer will verify that the vehicle is being re – exported within the prescribed period
of six (6) months, or such extended period as allowed by the Government of
492
India/Commissioner of Customs. The Customs Officer supervising the shipment will
check the particulars of the vehicles with those shown in the Shipping Bill and Carnet
with special attention on the extra fittings, if any. If satisfied of the identity and other
particulars, he shall give „let ship‟ order on the Shipping Bill.
While examining the vehicle, all the possible places of concealment for
smuggling of contraband goods should be checked thoroughly.
The Shipping Bill duly passed shall be handed over to the representative of
the shipper. The vehicle is to be re – exported in the same general state except the
wear and tear. On the production of Mate Receipt or Bill of lading, the Customs
Officer will sign the “Volet de Sortie” (Voucher No.2) of the Carnet de Passage and
on the export part of the voucher No. 3 (Souche) in token of discharge of the Carnet.
The “Volvet de Sortee” will be detached and sent to the dealing Officer for
retention with the case file and for making entry on shipment of vehicle in Carnet
Register and the Carnet returned to the tourist as proof of discharge of the Carnet.
In case where the tourist travels in the vessel in which the motor vehicle is
shipped, the Customs Officer supervising the shipment will follow the same
procedure as outlined in preceding paragraph.
The extra copy of the Shipping Bill and “Volet de Sortie” portion of the Carnet
constitute a file of re – export of vehicle. The same is then filed in Baggage Section
with relative file. If the vehicle was imported at same port, the re – export particulars
will be entered in the same register in which the import particulars were entered. If
the vehicle is re – exported from some other Customs station, then the re – export
particulars will be entered in the other Carnet register maintained for that purpose.
The re-export file along with the Carnet Register is then submitted for Astt.
Commissioner‟s approval.
In cases, where the vehicles under the Triptique are entered into India
through other Customs Ports, „Volet de Sortie‟ will be sent to the port of entry with an
advice that the vehicle has been re – exported during the validity period of the
Carnet, to enable that Custom House to close its case file. The Passport entry of the
tourist regarding clearance of the vehicle under Carnet procedure will then be
cancelled and the file forwarded to IAD (Internal Audit Department) for Final Audit.
493
[ C.B.R Letter F.No. 45/B/59-Cus. IV dt. 02.04.1966 ]
2.7.1 FAILURE TO EXPORT VEHICLES IMPORTED UNDER CARNET
It is the responsibility of the Carnet holder that the vehicle imported into India
under the said Carnet should be exported out of India within the permitted retention
period. Failure to re-export the vehicles within the stipulated period may result in
payment of Customs Duty, fine and penalty as per the law or seizure and
subsequent absolute confiscation of the vehicle.
2.7.2 NON RE-EXPORT OF VEHICLES
In case the re-export particulars of the vehicles are not received within the
permitted retention period of the vehicle of any extended period, appropriate Duty
Demand notice shall be served to the Guaranteeing Association. In accordance with
the Article 26 of the Convention, the Guaranteeing Association can only be asked to
pay Duty within a year from the date of expiry of validity of the papers.
The import file regarding the clearance of vehicle under the Carnet procedure
(Form X , Form FT and Volte De Entree of the Carnet) will be first forwarded to the
Appraising Department for favour for valuation of the vehicle imported. Duty demand
notice will then be served on the Guaranteeing Association on the basis by the
valuation.
The period of one year after the expiry of period permitted by the
convention is quite long and there is no reason why action to serve duty demand
notice should not be taken earlier by the Customs Department. The importance of
dealing with the Carnet cases speedily, after the Carnet period is over so that
Government‟s right in the matter does not go by default, has to be borne in mind.
The concerned officer shall therefore ensure that proper Duty Demand notice
is served against Guaranteeing Association for payment of duty and that it‟s
acknowledgement is duly received and placed in the file, as early as possible.
[ Ministry‘s letter F. No. 80/20/80 – VI dt. 11.10.1960 ]
Guaranteeing Association, after acknowledgement of duty demand notice,
may conduct necessary enquiry with the Carnet issuing Club. In case the vehicle
has been left behind in India, Guaranteeing Association will communicate the same
494
to the Customs, on which action for effecting seizure under the Provisions of the
Customs Act. 1962 could be initiated.
After the seizure of the vehicle, action regarding issue of Show Cause Notice,
adjudication etc. shall be taken. In case the vehicle has not been re-exported out of
India and the whereabouts of the vehicles are not available, then the Guaranteeing
Association shall pay the duty as demanded, within the time limit specified in Article‟s
of Convention.
2.7.3 GRACE PERIOD OF 14 DAYS ALLOWED
When the vehicles are presented to the Customs authorities for re-exportation
within fourteen days from the expiry of the Carnet and satisfactory explanations of
the delay are given, no action would be called for.
2.7.4 CUSTOMS CLAIMS AGAINST VEHICLES IMPORTED UNDER CARNET
a)
In terms of Notification No. 296/76-Cus., dated 2.8.1976, vehicles can be
temporarily imported into India for a period of six months without payment of
Customs duty against a carnet-de-passage issued by a member of an Automobile
Club or Association belonging to the Federation of Alliance International De
Tourisme. This period can be further extended for another period of six months.
2.
A representation has been received from the Federation of Indian Automobile
Associations (FIAA) citing difficulties being faced in the matter of customs claims
raised against vehicles temporarily imported into India by tourists under the Carnet
procedure. It has been pointed out by the Federation that in case the vehicles are
exported from a point other than the port/airport/land customs station of entry,
intimation regarding such export is often not sent by the customs to the point through
which the vehicles entered India. This leads to filing of claims by the Customs for
payment of customs duty with the Automobile Associations in India and in turn with
their international counterparts.
3.
The matter has been examined in the Board. In order to streamline the Carnet
procedure and as a measure to remove avoidable irritants, the following guidelines
may be observed. Entries relating to Importation Vouchers and Exportation Vouchers
495
in the Carnet documents must be duly signed and stamped by the Customs at the
ports/airports/LCSs of entry and exit respectively. Further, Customs at the point of
exit shall convey the particulars of exportation of vehicles brought into India by the
tourists under the Carnet to the port/airport/LCS of entry within one week of the date
of exportation. This may be sent by e-mail/fax, with appropriate documents to be
followed by post, to facilitate prompt reconciliation of Carnet documents.
4.
At the same time, when a vehicle arrives for temporary importation under
Carnet, the most likely exit point and point of export of the vehicle may be
ascertained and kept alongwith other relevant particular in the register that may be
maintained at the point of entry. It has to be appreciated that it may not be always
possible for the tourist to furnish the exact details of exit point and/or point of export
of the vehicle. Therefore, this information may be obtained from the tourist on a
purely voluntary basis, and should not under any circumstance be made a ground for
denying the benefits of the Carnet.
5.
It is requested to inform the field formations in your jurisdictions suitably. A
review of the pendencies in this regard may also be made in the Commissionerates
and officers incharge of exit points for vehicles should be asked to send requisite
particulars to the officers at the entry point, wherever not already done to help
reconcile all pending cases on an urgent basis.
[Circular No. 13/2001-Cus. dated 2nd March, 2001 from F.No. 575/1/2000-LC ]
b) In terms of notification No.296/76-Cus. dated 2.8.1976, vehicles can be
temporarily imported into India for a period of six months without payment of
customs duty against a valid Carnet-de-passage issued by a member of an
Automobile Club or Association belonging to the
Federation of Alliance
Internationale De Tourisme. This period can be further extended for another period
of six months.
2.
During a recent meeting held in the Board which was attended by
representatives of the AIT and FIA, Customs Affairs, Geneva, Switzerland and
Federation of Indian Automobile Associations, certain difficulties faced by the Carnet
holders inside the country, have been brought to our notice. These mainly related to
cases of reported harassment and delays in the clearance of Carnet vehicles and
496
also alleged indiscriminate issuing of demand notices on missing vehicles and
confirmation thereof.
3.
In order to solve the genuine difficulties faced by foreign tourists, field
formations are hereby directed that passengers availing of the Carnet facilities for
their motor vehicles, may be treated with proper respect and courtesy and customs
clearance should be effected expeditiously. It is also reiterated that demand notices
issued in cases of motor vehicles not figuring in the export records of the Indian
Customs, may not be confirmed in a routine manner. In fact, in some cases, vehicles
had already exited from the country, however, the information regarding the same
had not been passed on to the Customs formation through which the vehicles had
entered. In this way, for lack of proper communication between Customs formations,
the Carnet holders have to face serious inconvenience. In view of this, henceforth,
in cases of demand notices being issued, the FIAA should also be served with a
copy of the said notice and efforts may be made to elicit their response before the
demand is confirmed.
4.
These instructions may be communicated to the field formations in your
jurisdiction for compliance.
[Board‘s Circular No.
77/2003-Cus.
28th
August, 2003 from File No.
F.No.575/7/2002-L.C. ]
2.7.5 NON RE-EXPORT OF THE VEHICLE WITHIN THE STIPULATED PERIOD
DUE TO UNAVOIDABLE CIRCUMSTANCES
Sometimes due to circumstances beyond the control of a tourist it becomes
impossible or difficult for him to arrange re-export of the car within the period of 6
months or such extended period as might have been permitted by Commissioner or
the Board. This is often attributable to non-availability of shipping space; sometimes
some unforeseen circumstances necessitate the sudden departure of the importer
from India, in which case it becomes impossible for him to arrange the re-export of
the vehicle within the given time limit or at any rate before his departure from India.
Sometimes the Board may have already granted the request for maximum
permissible extension of retention period up to 12 months and further extension is
not considered desirable, nevertheless for genuine reasons it may not be possible
for the tourist to leave India say due to sickness of his own or his family members
497
and it might be a genuine hardship or uncalled for expenditure. In such
circumstances, a constructive step would be to permit the tourist to surrender the
custody of the car to Customs before expiry of the 6 months or extended period as
the case may be and ensure that the car during its retention in India beyond the
period of 6 months (or one year, as the case may be), is not used by the Tourist or in
his absence by third parties etc. It should be noted that surrender in Customs
Custody does not necessarily mean that the Commissioner should provide any
garage or parking space. If no such space is available in the Custom House, it will be
in order to ask the importer to arrange for garage or space as the Commissioner
deems fit and ask him to surrender the keys of the door lock and ignition in Customs
custody. As a further safeguard, a written declaration should also be obtained from
the tourist in such cases that the car has been stored in the garage entirely at their
own risk.
[ M.F. (DR) letter F.No. 15/8/64-Cus. LC II dated 26.10.1964 ]
2.7.6 ACCEPTANCE OF ALTERNATIVE EVIDENCE OF RE-EXPORT OF
MOTOR VEHICLE
According to article 24(I) of the convention for temporary importation of
Private Road vehicles, if temporary importation papers have not been regularly
discharged, Customs authorities of the Country of importation shall accept as
evidence of re-exportation of the vehicle or component parts, the presentation of a
certificate issued by official authority attesting the facts that the vehicle or component
parts in question have been presented to it and are outside the country of
importation. The last sentence of clause (I) of article 24 provides that in the case of
Carnet, account shall be taken, as evidence of re-exportation of the vehicle or
component parts, if the visas entered thereon by the Customs Authorities of the
countries subsequently visited.
In such cases before accepting alternate evidence of re-exportation of the
vehicle under article 24 of the convention, the antecedents of the party should be
checked up to ensure that the vehicle has not been used for contraband goods and
further that the production of certificate prescribed in the said article should be
insisted upon:
[ M.F.(DR) F.No. 15/22/61-LC II dated 09.07.1963 ]
498
3.
SURRENDER OF MOTOR VEHICLES IMPORTED UNDER CARNET
Sometimes, during the retention period, a vehicle imported under Carnet may
be damaged irrepairably in an accident or require a major refurbishing. Such
vehicles can be unconditionally surrendered to the Government of India through the
Customs authorities, free of all expenses to the Government. The Carnet them
should be discharged accordingly.
In such cases, particulars in the prescribed format (Annexure IV) shall be
obtained.
a)
Under Article 13 of the Customs Convention on Temporary Importation of
Private Road Vehicle, the re-exportation of badly damaged vehicle, shall not be
required, in the case of fully authenticated accidents, provided the vehicles:
a) are subject to import duties and import taxes to which they are liable, or,
b) are abandoned free of all expenses to the Exchequer of the country in which they
are imported temporarily, or ,
c) are destroyed, under the official supervision at the expense of the parties
concerned, as the Customs authorities may require.
Apart from the above, surrender of vehicles imported under triptique
concession shall also be accepted, provided such surrenders are made to the
Customs Authorities free of all expenses to the Exchequer and without any condition
whatsoever. This is, however, subject to the condition that such surrender is made
within 6 months of the date of original entry, of the vehicle into India or such
extended period as may be allowed by the competent authority and Commissioner of
Customs (Govt. of India) in terms of the provisions referred to in para above.
[Ministry‘s of Finance (Dept. of Revenue) No. 15/31/63-LC II dated 09.5.1963]
b)
Normally surrender of vehicle should be accepted after taking orders of the
Commissioner or Addl. Commissioner and no reference need be made to the Board
provided the date of entry of such vehicles is verified from the port of entry so as to
ensure that the vehicles surrendered are within the period permitted for retention. A
reference to the Board may only be made in such cases where due to peculiar
499
circumstances of the case, the Commissioner feels that it is necessary to take
Board‟s Orders. However, such reference should be made sufficiently in advance of
the tourists‟ departure from India so that no inconvenience is caused to him.
[ M. F., D.R., No. 15/27/63-LC II dt.17.08.1964/F. 15/104/80 LC II dt. 01.04.1971 ]
3.1
PERSON ENTITLED TO SURRENDER THE VEHICLE
In every cases of surrender, the authority accepting the surrender will have to
ensure that the person effecting the surrender is the owner of the vehicle. Hired cars
can also be brought by hirers under the triptique system but such surrender, if
effected by hirer will be bad in law.
As a matter of safety, therefore,
(i)
Where the Commissioner on scrutiny of such evidence as can be reasonably
had, is satisfied about the rightful title of the person effecting the surrender, a formal
confiscation is not necessary, but to avoid any dispute it would be advisable to obtain
from the importer a letter stating the details of the accident and police report if any,
or circumstances in which he is effecting the transfer and a formal documents
effecting a valid transfer of the title should also be got signed from him.
(ii)
Where there is any doubt, the title of the person effecting such surrender, to
be on the safe side, a formal order of confiscation should be issued.
[ M.F. (DR) F.No. 15/50/65 LC II dated 16.11.1965 ]
4.
PROCEDURES / CLARIFICATIONS ON CERTAIN SPECIFIC ISSUES
4.1
Definition of ―Legal Persons‖
Article 1 (c) of the Convention says that term “Persons” shall mean both
natural and legal persons unless the context otherwise requires. The expression
“legal persons” is accordingly used in contract to “Natural persons”. It would,
therefore, follow that firms, corporation etc. on when juristic personality has been
conferred by the status would be “legal Persons”.
4.2
Carnet Holder may be Owner or Hirer
500
A person normally resident outside India can temporarily import vehicle which
is not his own and which he has borrowed or hired. Article 8 prescribes that the
importation papers should be made in the name of the person who owns the vehicle
temporarily imported or who has the “possession or control of the vehicle. If the
vehicle has been hired the papers shall be made out in the name of hirer. The main
restriction is that the vehicle should be used in accordance with Article 2(1) and
Article II. Even if the owner of the vehicle is not a natural person the person who
imports it for private use as defined, if he is a natural person, is entitled to the
concession.
4.3
Tourist should be in possession of vehicle abroad
It will be permissible to import a car under triptique system for a tourist, say
from Kenya who intends to visit India and buys a car in the U.K. and after registration
there, the car is shipped to India.
In view, however, of the words “Imported and Utilised” appearing in Article II
of the convention on the Temporary Importation of Private Road Vehicle,
arrangements should be such that the tourist could be deemed to have been in
possession of the car abroad before importing into India. A scheme in which the
tourist formally takes delivery in India from hiring company would not qualify him for
the concession.
[ M.F. (DR) letter F. No. 8/17/60-Cus. VI dated 08.02.61. ( Inst. No. 6/61-Cus. VI ]
4.4
Hired Vehicles
A person other than “ legal persons” can hire a vehicle owned by a
commercial organisaiton and Import if for the private use of himself and others if not
normally resident in this country and who fulfill the other condition (Sec Article 1).
The fact that these persons share the expenses of hiring the vehicle themselves
would not be repugnant to the definition of Private use as given in articles 1 (c).
4.5
Carnet in the name of Designated post
Carnet which is issued in favour of designated post without mention of name
of the holder shall not be valid for Temporary Importation of Private Road Vehicles
under triptique concessions. (the Customs Concessions do not contemplate grant of
501
Carnets in favour of designated post in terms of clause 1 of Article 2. The preamble
clearly provides that legal persons should be excluded from the categories of person
to whom concession envisaged in Convention are applicable)
4.6
Definition of ―normally resident abroad‖
The meaning of expression “Normally resident outside its territory:
In relation to a foreigner, Its interpretation presents no difficulty, read
particularly in the light of the reservation against person taking up paid employment
or other gainful occupation. In the case of an Indian National who takes up residence
abroad, it is a question of intention that is relevant for interpreting the above
expression. The term "Normal" indicates some permanency of residence abroad,
deducible from circumstances surrounding. For instance an Indian National may start
a business in foreign country and may take up residence there for running that
business. If it is clear that the running of the business requires his residence there,
then he should be regarded as normally resident abroad. Such cases of Indian
National who comes home temporarily should be judged on the merits of each case.
4.7
Vehicle can be used during the period of Hospitalization
Where the vehicle is not exported out of the country within permitted period of
retention due to the illness of the tourist, who brought the car or a person
accompanying him or a family member, the condition of garaging has been waived if
the tourist or person accompanying him or a family member is hospitalised. This
relaxation has been introduced to avoid hardship to the tourist if they were to be
deprived of the use of the car in times of need due to the hospitalisation. Re-export
of the car on the expiry of six months from the date of its importation into India
extended by a period of garaging or hospitalisation is also allowed. In the event of
death or illness of the tourist or a family member accompanying him, the above
facility is given.
Even if the family member does not accompany the tourist but remains in
India, this concession will still be available.
[ M.F. (DR) Letter F. No. 15/51/70-LC II ]
4.8
Discrepancy In Engine Number In Carnet
502
When the Chassis and engine numbers of the vehicle as recorded in the
triptique pass or Carnet de passage are found to be different from those actually
ascertained on examination, the Preventive Officer will endorse on the triptique
pass/or Carnet de passage, the actual ascertained numbers next to the declared
Numbers and draw a small circle round the numbers in dispute.
The endorsement should be initialed both by the Preventive Officer and the
tourist or his representatives and the clearance of vehicle allowed by the
superintendent. A separate Report giving full details of discrepancies should be
forwarded to Preventive Deptt. for bringing it to the notice of concerned Association
through Guaranteeing Association.
[ Board‘s letter F. No. 8/15/58-Cus. VI dated 15.12.1958 ]
4.9
Taking Up of Gainful Employment in India by Carnet Holder
a) If the owners of the vehicles imported under Carnet Concession commit offence
such as taking up gainful employment etc. the full rigour of the law must be applied
and surrender of the vehicle cannot be accepted.
[ M. F. (DR) Letter No. 15/27/63-LC II dated 26.09.1963 ]
b)
Persons normally resident outside India when on the occasion of temporary
visit to India take up paid employment or any other gainful occupation are excluded
from the benefits of duty free Import of cars.
As such where a person who brings a car under triptique system, asks for
extension for the retention period beyond the normal period of 6 months, discreet
enquiries should be made as to whether the person has taken up any gainful
employment, before granting extension.
[ Ministry‘s letter F. No. 15/38/66 –LC - II dated. 18.10.1965]
c)
In cases where the person has come to India only to attend to some work in
connection with his business interest in India should not be deprived of the facilities
under Carnet procedure. Only those persons who take up paid employment or any
other forms of gainful occupation have been excluded from the concessions of duty
free importation of Motor Vehicles.
503
[ Ministry‘s letter F. No. 15/52/66-LC II dated the 5th Dec., 1966 ]
4.10
Liability of duty on Carnet vehicles confiscated and allowed to be reexported on payment of fine
Whenever it is held that condition of the relevant notification have been
infringed duty has to demanded even if the car is re-exported. In that case the
drawback only can be allowed as admissible.
[ Board‘s letter F. No. 15/64/63-LC II dated 07.10.1963 ]
4.11
No liability to pay the duty when the vehicle is confiscated
If a vehicle is absolutely confiscated the party‟s liability to pay duty will cease
and in such cases there will be no question of raising demand against the
guaranteeing association.
[ M.F. ( D.R. & I ), F. No. 575/16/71- LC II dated 06.06.1972 ]
4.12
Liability to pay Duty – Law Ministry‘s opinion
Subject : Customs –Import of V/W No. 401-2-6836 (1969) by Mr. Jabbar through
Hussainwala Check Post on 09.07.1969 under Carnet No. 639658-CR:
Please refer to CCE, Chandigarh‟s letter C. No. VIII IHQRS) 18/4/Cus./82/
701, dated 27-1-1982 on the above subject.
2. The Law Ministry‟s opinion on this subject, dated 24-3-1988 is attached.
You may take necessary action in the case on the basis of Law Ministry‟s advice,
which has been accepted by the Board.
Notes in the Ministry of Law & Justice,
Department of Legal Affairs,
Advice (b) Section
504
The reference concerns realization of Customs Duty from the federation of
Indian Automobile Association in terms of the Agreement made on27-4-1977
between the Federation and the Government,on failure of condition relating to reexportation of a vehicle covered by the Customs Convention on the temporary
importation of private road vehicles, when the vehicle is absolutely confiscated under
Section 122 read with Section 111 (o) of the Customs Act, 1962, and the amount
received after its auction falls short of the Customs Duty leviable thereon on
importation. In this connection, are also relevant the provisions of Clause 11 (l)(m) of
the Imports (Control) Order, 1955.
2. The question was first considered by this Department, vide our U.O. note
No. 21495/84(B), dated 11-4-1984, and it was opined that the Federation was bound
to make payment towards the Customs Duty as its obligation did not end by
confiscation of the vehicle.
3. The point seems to have been confused in further reference made to this
Department. The cause of confusion appears to be the assumption of the
administrative Department that “in cases where the
goods are absolutely
confiscated, the question of payment of Duty does not arise”, vide their U.O. note no
575/II/82-LC.II, dated 08-01-1966.
4.
The Supreme Court in the case of Union of India V. M/s Security and
Finance (P) Ltd. – AIR 1975 SC 2288, as regards the dichotomy of Import Duty
chargeable under Section 20 and the penal complex set out in Sections 182, 183
and 184. In the light of the provisions of the Customs Act, 1962, import/export Duty is
an obligation cast by Section 12, it is a tax, not a penalty; it is an innocent levy once
exigible event occurs; it is not a punitive import for a contravention of the law;
confiscation, penalty and fine provided for under the Act are of the species of
punishment for violation of the scheme of prohibition and control. The importation
attracts Duty which any importer, licit or illicit, has to pay the moment Customs
barrier is crossed. Import Duty has to be paid inevitably by the importer. Confiscation
or fine in lieu thereof is an infliction on the offender or circle of offenders falling within
the Act. Sometimes, the burden in both the cases falls on the same person. At other
times, they may fall on different persons. In some cases, the importer as well as the
confiscate may be identified and so the Duty and the penalty may be imposed
validly. In other cases, it may be difficult to get at the actual person who imported or
505
was concerned in offence of importation contrary to the prohibition or restriction
clamped down by the law. In that event only confiscation, alternatively, fine, may be
imposed.
5.
In short, the obligation under Section 12 fo the Cstoms Act, 1962 is
independent of the liability under various provisions relating to the punitive scheme
of the Act. Whether the goods concerned have been ordered to be released on
payment of fine inlieu of confiscation under Section 125(1) or an absolute
confiscation thereof has been ordered does not make any difference as regards
payment of the Customs Duty leviable under Section 12 by the importer concerned.
6.
In the instant case, the Federation is liable under the agreement to pay
the Customs Duty leviable but for the exemption, as if the vehicle has been imported
by it.
7.
Accordingly, we reiterate our earlier opinion quoted above.
Ministry of Law & Justice,
Deptt. Of Legal Affairs,
Advice (B) Section
U.O. No. 20650/88, 25-3-1988
Sd/( B. A. Agrawal)
Deputy Legal Adviser.
24-3-1988
[ F. No. 575/11/82-LC II dated 16.05.1988 ]
5.
DISPOSAL OF CONFISCATED VEHICLES UNDER CARNET/
TRIPTIQUE
Sometimes prompt steps are not taken to dispose of motor vehicles initially
imported under a Carnet/triptique and subsequently confiscated for contravention of
Customs and other allied laws. Continued storage of such vehicles, besides
considerable expenditure on maintenance of garaging facilities also lead to
depreciation in the value of vehicles.
506
(i)
Where the order of confiscation gives the option to redeem the vehicles
on payment of fine in lieu of confiscation, period allowed should be only upto 30 days
and not four months as is the usual practice for ordinary goods. Where an option to
re-export the vehicle is given, the period allowed for re-export should normally be
two months, if the party does not clear the motor vehicle by paying a fine in lieu of
confiscation or does not arrange to re-export the vehicle within the permitted period,
a final notice of a week or ten days should be given to him, after which the vehicle
should be disposed of and
(ii)
Where the motor vehicle has been confiscated absolutely steps should
be taken to dispose of the confiscated vehicle straight away.
In disposal of motor vehicles, care should be taken to see that as far as
possible such vehicles are not found suitable for departmental use, are sold at the
best available market price so as to avoid any loss to the owner in the event of
adjudication order being set aside on appeal or revision and to avoid any possible
dispute with the owner regarding the adequacy of the price at which the vehicle was
sold. In case the party succeeds in appeal or revision it can claim the sale proceeds
and not the restoration of the seized vehicle, which may not be of such use to him
after lapse of considerable time.
[ F.No. 15/61/66. LC- II dated 25.01.1967 ]
6.
GOODS IMPORTED / EXPORTED UNDER ATA CARNET
In order to facilitate the Indian and international manufacturers/traders to
temporarily import/export their goods to various countries for display and
demonstration to promote the international trade, Government of India have acceded
to the “Customs Convention on A. T. A. Carnet for temporary importation of goods”.
Presently the temporary duty free imports (including re-imports) and exports
(including re-exports) of the goods intended to be displayed at exhibitions/fairs in
India and abroad as approved by the Government of India or by the Indian Trade
Promotion Organisation as well as at meeting, conference or congress organized by
any company or organization, are only allowed. The following goods are excluded
from ATA Carnets procedure: -
507
1. Consumables and goods meant for distributions or sale which are not likely to be
re-exported.
2. Goods imported through the medium of post.
3. Transit goods.
4. Goods for exhibitions organized for private purposes in shops or business
premises with a view to promote the sale of foreign goods.
6.1
A.T.A. CARNET CONVENTION
Its full name is "Customs Convention on the A.T.A. carnet for the temporary
admission of goods" (done at Brussels, 6 December 1961). It is an international
instrument designed to facilitate the importation, irrespective of the means of
transport used, of goods which are granted temporary duty-free admission.
The
Convention
specifies
a
form
of
A.T.A.
carnet
(ATA
=
Admission
Temporaire/Temporary Admission) and conditions for its use in lieu of national
Customs documents. It also sets out the minimum facilities to be accorded in relation
to the use of A.T.A. carnets. The Convention foresees that under certain
circumstances A.T.A. carnets can, optionally, be accepted for application to goods in
transit.
The application of A.T.A. carnets to trans-border movement (including transit,
importation for home use and temporary admission) of all goods involved in the
delivery of humanitarian assistance would be of considerable advantage as it means
that only one and the same document would be filled in each time irrespective of the
number of border crossings, differences in national Customs regulations and type of
goods.
Another advantage of the use of A.T.A. carnets is that no national security for the
payment of import duties and taxes has to be lodged with the countries in transit or
temporary admission as this security is provided by an international guaranteeing
chain.
The A.T.A. carnet may also be optionally used for temporary exportation from and
re-importation into the country of issue of the carnet. However, it is important to note
that the A.T.A. carnets can never be used for importation for home use, nor for the
sole use as a transit or temporary exportation document.
508
6.1.1 WHAT IS AN ATA CARNET
The ATA Carnet is an international customs document that permits duty-free
and tax-free temporary import of goods for up to one year. A Carnet disposes of the
need for raising bonds or depositing duty at customs posts.
The Carnet contains two vouchers from each foreign country one wishes to visit.
One for the foreign Customs people when one enters the country and the other when
one leaves.
ATA Carnets generally cover:
Commercial samples
Professional equipment
Goods for presentation or use at trade fairs, shows, exhibitions, etc.
ATA Carnets do not cover perishable or consumable items or goods for
processing or repair.
ATA Carnets are issued and guaranteed by national groups, which administer
the ATA system under a set of conditions established by the International Bureau of
Chambers of Commerce (IBCC). The IBCC is sponsored by the International
Chamber of Commerce (ICC) in Paris.
Guaranteers for ATA Carnet in India is the Federation of Indian Chamber of
Commerce and Industries.
6.2
IMPORTS /EXPORTS THROUGH ATA CARNET
The Govt. of India have issued Notification No. 157/90-Cus, dated 28.03.1990
which deals with the issue of imports/exports under ATA Carnet. In terms of this
notification specified goods when imported into India for display or use at any event
specified in the Notification, are exempt from the whole of Customs duty and the
whole of additional duty leviable thereon. Further, Notification no. 158/90-Cus, dated
28.03.19990, exempts these goods from auxiliary duty.
However, nothing contained in the notification no. 157/90 shall apply to goods
imported through the medium of post.
509
The Director General of Inspection, Customs & Central Excise has been
designated as the “authorised officer” by the Ministry of Finance, Deptt. of Revenue,
for the purpose of Convention on ATA Carnet. The Director General of Inspection,
Customs & Central Excise receives approval of Exhibitions/Fairs by different
Ministries. The centralised records of such approval is kept by the Directorate
General. Such approvals are then promptly communicated by the DGICCE to the
Custom Houses and Guaranteeing Associations.
The govt. of India vide their letter F.No. 528/220/91-Cus (TU), ICD, dated
23.06.1994, have conveyed its decision to allow import of jewelry free of duty under
the Notification no. 157/90 – Cus, dated 28.03.90, through international Airports / Air
Cargo Complex at Sahar Village, Mumbai, and Air Cargo Complex, New Delhi,
subject to observance of certain procedures.
6..2.1
EXEMPTION TO SPECIFIED GOODS IMPORTED FOR DISPLAY OR
USE AT ANY SPECIFIED EVENT SUCH AS MEETINGS, EXHIBITIONS, FAIRS
OR SIMILAR SHOW OR DISPLAY.
Salient features of the Notification no. 157/90 are reproduced below –
The Central Government has exempted the goods described in Schedule I
below, when imported into India for display or use at any event specified in Schedule
II or Schedule III, from the whole of the duty of customs leviable thereon which is
specified in the First Schedule to the Customs Tariff Act, 1975 and from the whole
of the additional duty leviable thereon under section 3 of the said Customs Tariff
Act, subject to the conditions that :(1) the event specified in Schedule II is being held in public interest and is
sponsored or approved by the Government of India or the India Trade Promotion
Organisation;
(2) the said goods are imported under an ATA Camet issued in accordance with
the Customs Convention on ATA Camet for temporary admission of goods and the
Camet is guaranteed by the Federation of Indian Chamber of Commerce & Industry,
which has been appointed as the guaranteeing association for ATA Camet in India;
510
(3) the said goods in all respects conform to the description, quantity, quality,
value and other specifications given in the ATA Camet duly certified by the Customs
authorities at the country of exportation;
(4) the said goods shall be exported within a period of six months from the date
of importation:
Provided that where the goods are exported within the said period of six
months and again re-imported, the period of six months shall be computed from the
date of first importation;
Provided further that when the Deputy Commissioner of Customs or Assistant
Commissioner of Customs is satisfied that it is necessary in the public interest so to
do, it may extend the said period of six months by a further period not exceeding six
months;
(5) in the event of failure to export the goods within the period specified in
condition (4), the customs duty leviable on the goods as on the date of clearance
shall be paid by the Federation:
Provided that the Federation shall not be liable to pay the customs duty in
cases where the said goods are sold in exhibitions or fairs or otherwise disposed of
in India in accordance with any law for the time being in force applicable to such
goods and on payment of the duties of customs which are payable in respect of such
goods.
SCHEDULE I
(a) Goods intended for display or demonstration.
(b) Goods intended for use in connection with the display of foreign products,
including (i) goods necessary for the purpose of demonstrating machinery or apparatus to
be displayed:
(ii) construction and decoration material including electrical fittings, for the
temporary stands of foreign exhibitors:
511
(iii) advertising and demonstration material which is demonstrably publicity
material for the goods displayed, for example, sound recording, films and lanterns,
slides and apparatus for use therewith :
(iv) equipment including interpretation, apparatus, sound recording apparatus
and films of an educational, scientific or cultural character intended for use at
international meetings, conferences or congresses.
SCHEDULE II
(EVENTS)
1. Trade, industrial, agricultural or crafts exhibition, fair, or similar show or display.
2. Exhibition or meeting which is primarily organised for a charitable purpose.
3. Exhibition or meeting which is primarily organised to promote any branch of
learning, art, craft, sport or scientific, educational or cultural activity to promote
friendship between peoples, or to promote religious knowledge or worship.
4. Meeting of representatives of any international group of organisations.
5. Representative meeting of an official of commemorative character.
Explanation:- The events specified in this Schedule do not include exhibitions
organised for private purposes in shops or business premises with a view to promote
the sale of foreign goods.
SCHEDULE-III
(EVENTS)
Display or demonstration before any department before any department of Central
Government or a State Government or a Union Territory Administration.
Meeting, conference or congress organized by any company or organization.
6.3
GOODS UNDER ATA CARNET CARRIED AS PERSONAL BAGGAGE
Many a times, passengers may carry goods as their personal baggage which
are meant to be cleared under ATA Carnet procedure.
It is but mandatory to restrict this facility only to the goods and events
described in the notification. It has been observed that in large number of cases, test
512
equipment‟s, instruments or other goods of high value imported as accompanied
baggage by passengers have been cleared against ATA carnet for temporary
importation of goods despite the clear instructions that this facility is restricted to
specified goods imported for display or use at use at specified exhibitions/fairs and
similar events covered under the Notification no. 157/90.
It is, therefore, notified to all concerned that henceforth as and when any
passenger declares any goods covered by ATA Carnet papers and seeks clearance
without payment of duty, the said goods should be cleared under carnet papers only
if they are covered under the Notification no. 157/90. In all such cases, prior
permission of the Asstt. Commissioner of Customs (AP) on duty must be obtained.
In the event any import claimed clearance under carnet but the said goods are
not covered under the Notification no. 157/90-Cus, the same should be cleared
under the prevalent Baggage rules, 1998, as amended, alongwith other prohibition
and exemption under the law.
6.3.1 PROCEDURE FOR IMPORTS UNDER ATA AT AIRPORT
The procedure for clearance of ATA Carnet goods carried as baggage but
admissible otherwise is detailed below 1.
The ATA Carnet has four counterfoils and vouchers viz Exportation counterfoil
and Voucher, Re-importation counterfoil and voucher, Importation counterfoil and
voucher and Re-exportation counterfoil and voucher.
2.
For monitoring and processing the imports / exports of goods cleared under
Carnet, the Case File Office will maintain a register as prescribed by the Board.
3.
Asstt. Commissioner (AP) / Air customs superintendent and one ACO will
attend to clearance of imports under Carnet in addition to their normal duties.
4.
In the event of imports under carnet, the ACS i/c Carnet will first confirm that
the goods are imported for display or for use at Govt. approved Exhibitions/Fairs
and/or similar events which are covered under notification no. 157/90.
5.
Air Customs superintendent posted for Carnet clearance will verify the general
list given on the reverse of the voucher with reference to the description, marks and
513
numbers and certify to that effect. On the face of the importation, counterfoil and
voucher and re-importation counterfoil and voucher, as the case may be, will certify
under his full signature with name & date and will retain voucher for departmental
use. The verification report will be made in column (d) “other remarks” in the original
and duplicate copy of the importation voucher. Since the imports will be under
passenger‟s baggage mode, the classification CTH 98.03 will be mentioned in
column 2 on the reverse side of the voucher. The Air Customs superintendent should
also obtain the details of exhibition, i. e., name and venue of Fair/Exhibition,
meetings, etc. and its sponsors. The details of exhibition will be mentioned on the
reverse side of the voucher so as to keep track of the imports vis-à-vis sponsors. Air
Customs superintendent Carnet should ensure that all the carnet papers which are
retained in the batch are forwarded to CFO for entering in the Carnet Register and
for further monitoring of its exports. In the event the goods are intended to be
exported out of India from place other than the Airport of Import, the ACS i/c Carnet
should ascertain the place of re-export and mention the same on reverse side of the
voucher.
6..3.2
1.
PROCEDURE FOR EXPORTS AT AIRPORT
The ACS i/c Departure should properly verify the description, quantity, marks
and numbers and endorse the re-exportation voucher and counterfoils and the goods
will be allowed to be re-exported out of India. ACS i/c Departure will indicate the
flight number and date by which the goods are being re-exported. The endorsements
will be given by ACS i/c Departure under his seal and full signatures with date. He
will also mention details of Fair/Exhibition, meetings, etc. for which the goods were
temporarily imported. Thereafter, ACS i/c Departure should ensure that all the
Carnet papers are forwarded to ACS i/c CFO on the next working day for correlating
the entry regarding the exports of goods. In the event the goods not initially imported
at the Airport of departure but exported from the Airport, the re-export voucher
should be sent to the concerned Commissionerate by the CFO for co-relating with
the importation.
For monitoring the importation/exportation through ATA Carnet, one register
indicating the following details such as Carnet voucher no./date of issue, Name of
the pax/Sponsor‟s name and address, Description of the goods in brief, flight
514
number/date for all the batches will be maintained module wise by Arrival and
Departure. PRO i/c Batch will ensure that all the Carnet papers are forwarded to
CFO without any delay on the next working day.
The Directorate General of Inspection, being the monitoring authority for all the
clearances granted by the Custom Houses, is to be kept informed through periodical
statements from the Airport regarding description and value of the goods imported
under carnet and subsequent re-export and amount of customs duty recovered
thereon in case of failure to re-export of the goods. The following statements will be
prepared by the CFO (Carnet Cell) and sent to Directorate General of Inspection,
Customs & Central Excise, New Delhi, before 10th of the month following the quarter
for which the statement pertains. The proforma of statements are enclosed at
Annexure V.
6.4 FORM OF BILL OF ENTRY & SHIPPING BILL FOR CLEARANCES
UNDER ATA CARNET
The formats of Bill of Entry or the Shipping Bill to be presented by an importer
or an exporter of any goods for import or export under ATA Carnet has been
prescribed in the ATA Carnet (Form of Bill of Entry and Shipping Bill) Regulations,
1990 issued Notification No. 14/90-Cus-(N.T.), dated 06.04.1990.
*****
515
ANNEXURE I
CARNET CONVENTION
In order to facilitate to the development of International tourism, the United
Nations Conference on Road and Motor Transport was held in Geneva on 23rd
August to 19th September, 1929. The Convention was agreed and drafted which is
called ―Customs Convention On Temporary Importation Of Private Road
Vehicles‖.
The text of Convention contains 44 articles explaining the provisions of issue
of temporary importation papers, exportation of vehicles, surrender of vehicles,
liabilities and function of Automobile Associations, Customs regulations, etc.
On 24th January 1958, the Government of India also signed the Convention.
Some of the important articles are a under:
Article—2
Each of Contracting States shall grant temporary admission without payment
of import duties and import taxes and free of import prohibitions and restrictions
subject to re-exportation, and to the other conditions laid down in this convention, to
vehicles owned by persons normally resident outside its territory. Which are imported
and utilised, for the private use on the occasion of temporary visit, either by the
owners of the vehicles or by other persons normally resident outside its territory.
Such vehicles shall be covered by temporary importation papers guaranteeing
payment of import duties and import, and if the case should arise, of any Customs
penalties incurred, subject to the special provision of paragraph 4 of article 27.
Note: Notwithstanding the provisions of article 2 of this Convention, persons
normally resident outside India who, in the occasion of a temporary visit to India,
take-up employment or any other form of gainful occupation would be excluded.
(Difference filed by the President of India for the above Convention).
Article—5
516
1.
Subject to such guarantees and under such conditions as it may determine,
each contracting State may authorise associations, such as those affiliated to an
International Organisation to issue either directly or through corresponding
associations the temporary importation papers covered by this Convention.
2.
Temporary importation papers may be valid for a single country or Customs
Territory, or for several countries of Customs Territories.
3.
The period of validity of these papers shall not exceed a year from the date of
issue.
Article—9
1.
The weight to be declared on temporary importation papers is the net weight
of the vehicles. It shall be expressed in the metric system. In the case of papers valid
for one country only, the Customs Authorities of that country may prescribe the use
of another system.
2.
The value to be declared on temporary importation papers valid for one
country only shall be expressed in the currency of that country. The value to be
declared on a Carnet de passages endouane shall be express in the currency of the
country where the Carnet is issued.
3.
The articles and tool-kit which form the normal equipment of vehicles need not
be specially declared, in the temporary importation papers.
4.
When the Customs authorities so require, parts (such as wheels, tires and
inner tubes) and accessories not considered as constituting the normal equipment of
the vehicle (such as radio sets, trailers not declared on a separate document, or
luggage carriers) shall be declared on the temporary importation papers with the
necessary particulars (such as weight and value) and shall be produced on exit from
the country visited.
Article—11
1.
Vehicles admitted under the cover of temporary importation papers may be
used, for their private use by third persons duly authorised by the holders of the
papers provided that those third persons normally reside outside the country of
importation and also fulfill the other conditions laid down in this Convention. The
Customs authorities of the Contracting States have the right to require evidence that
517
such persons have been duly authorised by the holders of the papers and fulfil the
aforesaid conditions. If this evidence does not appear sufficient the Customs
Authorities may refuse use of the vehicle in their country under cover of the papers.
In the case of vehicles which have been hired, each Contracting State may, in the
case of fear of abuse, require that the holder of the temporary importation paper be
present at the time of importation of the vehicle.
2.
Notwithstanding the provisions of the proceeding paragraph, the Customs
Authorities of the Contracting States may permit, in special circumstances and under
conditions of which they shall be sole judges, a vehicle circulating under cover of
temporary importation papers to be driven by a person who is normally resident in
the country of importation, in particular when the driver drives the vehicle on behalf
of or under instructions from the holder of the temporary importation papers.
Article—13
1.
Notwithstanding the requirement of re-exportation laid down in article 12, the
re-exportation of badly damaged vehicles shall not be required. In the case of fully
authenticated accidents, provided that the vehicles:
(a) are subjected to the import duties and import taxes to which they are liable; or
(b) are abandoned free of all expenses to the exchequer of the Country into which
they were imported temporarily; or
(c) are destroyed under official supervision, at the expenses of the parties concerned
as the Customs authorities may require
2.
When a vehicle temporarily admitted cannot be re-exported as a result of the
seizure, other than a seizure made at the suit of private persons. The requirement of
re-exportation within the period of validity of the temporary importation papers shall
be suspended for the duration of the seizure.
3.
The Customs authorities shall notify, as far as possible to the Guaranteeing
Association, seizures made by or on behalf of these Customs authorities of vehicles
admitted under cover of temporary importation papers guaranteed by the association
and shall advise it to the measures they intend to take.
Article—14
518
Vehicles imported into the territory of one of the Contracting States under
cover of temporary importation paper may not be used even incidentally for transport
against payment, reward or other consideration between points within the frontiers of
the territory.
Article—18
When the Customs authorities of a country have finally and unconditionally
discharged temporary importation papers they can no longer claim from the
guaranteeing association payment of import duties and import taxes, unless the
certificate of discharge was obtained improperly or fraudulently.
Article—26
Customs Authorities shall not have the right to require from the guaranteeing
association payment of import duties and import taxes on vehicle or component parts
temporarily imported when the non-discharge of the temporary importation papers
has not been notified to the guaranteeing association within a year on the date of
expiry of the validity of those papers.
Article—27
1.
The guaranteeing associations shall have a period of one year from the date
of notification of the non-discharge of temporary importation papers in which to
furnish proof of the re-exportation of the vehicle or component parts in question
under the conditions laid down in this Convention.
2.
If such proof is not furnished within the time allowed the guaranteeing
association shall forth with deposit or pay provisionally the import duties which
became final after a period of one years from the date of deposit or provisional
payment. During the latter period, the guaranteeing association may still avail itself of
the facilities provided by the preceding paragraph with a view to re-payment of the
sums deposited or paid.
3.
For countries whose regulations do not provide for the deposit or provisional
payment of imports duties, payments made in conformity with the provisions of the
preceding paragraph will be regarded as final, it being understood that the sums paid
may be refunded when the conditions laid down in this article are fulfilled.
519
4.
In the case of the non-discharge of temporary importation papers, the
guaranteeing association shall not be required to pay a sum greater than the total of
import duties and import taxes applicable to the vehicles or component parts not reexported, together with interest if applicable.
Article – 28
In the event of fraud, contravention or abuse the Contracting States shall
notwithstanding the provisions of this Convention, be free to take proceedings,
against persons using temporary importation papers, for the recovery of the import
duties and import taxes and also for the imposition of any penalties to which such
persons have rendered themselves liable. In such cases, the guaranteeing
association shall lend their assistance to the Customs authorities.
Article – 29
The Contracting States shall endeavour not to introduce Customs procedures
which might have the effect of impending the development of international touring.
Article – 31
Any breach of the provisions of this Convention, any substitution, false
declaration of facts having effect of causing a person or an article improperly to
benefit from any system of importation laid down in this Convention, may render the
offender liable in the country where the offence was committed to the penalties
prescribed by the laws of that country.
520
ANNEXURE – II
FORM – ‗X‘
Sr. No.
Year
Application for the Import of vehicle components parts free of duty under the
Carnet De Passage or triplicate
----------------------------------------------------------------------------------------------------------1.
Name and Nationality of the Applicant
2.
Name of carrier, date and place of arrival
3.
Passport No. date and place of issue
4.
Purpose of visit and duration of stay
5.
Details of the component parts and accessories (other than normal
equipment) imported along with the vehicles *
________________________________________________________________
Description *
Quantity
Value
________________________________________________________________
* (Where possible the description should include the part number)
Form of declaration and undertaking
1.
I hereby declare that the particulars given above are true and correct.
2.
I also declare that it has been explained to me that as per the difference filed
by the Government of India to the Customs Convention temporary importation of
private road vehicles. I am not entitled to any of the concessions admissible under
the said conventions, if I take up a gainful employment during my stay in India. I also
521
further declare that I am not gainfullly employed in India. I also further declare that
for breach of this undertaking, the vehicle will be liable to confiscation.
3.
I also declare that the provisions of item (n) clause 11 of imports control order
of 1955 have been explained to me that according to the same, the vehicle alongwith
the Parts if any, must be exported out of India within 6 months from the date of
importation, or on expiry of period of validity of the Carnet, whichever is earlier, and
further that they shall not be sold in India. I further declare that if I fail to fulfil any of
the above conditions, I shall pay the Customs duty on the vehicle, spare parts, and
other articles, if any, not exported in time and also any fine and penalty which may
be imposed, if I fail to obtain the necessary import Licence.
4.
I hereby undertake that in the event of any occasion arising for surrender of
any motor vehicle to the Customs Department, I shall surrender the motor vehicle
myself personally to the Deputy/Assistant Commissioner of Customs (Prev.) of the
Custom House through which I leave the country or to the Commissioner of Central
Excise and Customs in whose jurisdiction I wish to surrender.
Signature of the Applicant or
Authorised Agent.
Note: (i) The term “Vehicle” means all Road Motor vehicles (including cycles with
engine)
and trailers (whether imported with the vehicle or separately together with
its component parts and normal accessories equipment, when imported with the
vehicle.
(ii)
The Motor vehicle is being passed without payment of duty on the
understanding that it will be used only by the applicant or by a person who is
normally not a resident in India. Persons normally resident in India may be employed
as paid drivers by Carnet Holders. In no circumstances the use of the vehicle by
person normally resident in India is permissible.
General Instructions
522
The application form should be presented to the Baggage Officer in the
Preventive Department alongwith the following documents, which are required to
check the correctness of the value furnished.
(a)
Original receipts, if any showing the actual cost of the vehicle, extra fittings,
special alterations etc.
(b)
Re-valuation certificate of an automobile Association.
(c)
Memo of freight and Insurance charges.
(d)
Registration Cards.
In case the Preventive Officer wished to examine the vehicle for the purpose
of determining the value, notwithstanding the documents produced., it is open to him
to do so.
For Department use only.
A report on valuation:
(a) Model
(b) Year of manufacturing
(c) Period of use till date of importation
(d) Mileage
In addition to the foregoing details checked and found correct the details
shown in the import foil the Triptique as also at entry 6 on the application form
subject to the following.
Name and Nationalities of other occupants.
(i)
(ii)
Prev. Officer/Inspector
Inspector/Dy. Supdt./Supdt.
1.
Remarks of Intelligence section, if any.
523
Prev. Officer/Inspector
Inspector/Dy. Supdt./Supdt.
2.
Passed out of Customs Control
Divisional Inspector/Prev. Officer
Inspector/Dy. Supdt. / Supdt.
ANNEXURE – III
Form ―FT‖
(see rules 21 & 23 of Bombay Motor Vehicles Rules 1959)
Form of Declaration for Motor Vehicles Brought into The State.
I……………………………………..residing
(Temporarily) at………….…………………………….
at………………………….
(permanently) hereby declare
that I have brought the undermentioned motor vehicle into the State of
…………………….. on ……………………..and that I intend to keep it in the State
upto ……….…….for use.
*a
Solely within the limits of:
which has levied a tax):
*b
Both within and without the limits of………………………
1.
Class of Motor Vehicle
2.
Registration Mark
3.
Maker‟s name
4.
Type of the body
5.
No. of chassis
6.
No. of Engine
524
7.
Unladen weight.
8.
Seating Capacity if plying for hire
9.
Registered laden weight (if a goods vehicle)
10.
(a) Date on which it has last removed from the State of ……………..
(b) Date on which it has last removed from the State of Maharashtra.
11.
The fuel used in the vehicle
12.
Name of insurer
13.
Insurance Certificate No.
14.
Date of validity form ………………to………………
Date:
Signature of the Declarant.
Tax token No. …………….expiring on……………………………………has
been issued by me after recovering Rs………………………………..being the tax
dues.
Taxation Authority
*
Strike out whichever is in applicable.
*
Here mention local authority.
Municipality
Motor
vehicle
No.
6
…………………..
Name and address
Govt.
Tax
paid
Rs.
…………………………………………
for
the
………………………. from ……………….to ……………………….for…………..
Non-use accepted from ……………..to………………
period
525
ANNEXURE IV
Form
for
Surrender
of
Motor
Vehicles
imported
into
India
under
Carnet/Triptique system
1.
Name of the Importer
2.
Passport No.
3.
Nationality
4.
Profession
5.
Country in which the Importer normally resides and address
6.
Importer‟s Permanent Address
7.
Particulars of the Carnet de Passage under which the motor vehicle was
imported into India
8.
Description of Motor Vehicle Imported:
1. Make:
2. Model:
3. Chassis No.
4. Engine No.
5. Present value.
9.
Date of importation and Port through which the motor vehicle imported
10.
Whether the vehicle is the Importer‟s own property or a hired one
11.
If the vehicle is hired one, the particulars of the actual owner:
12.
Name of the owner of the vehicle as given in the Certificate of Registration
13.
Certificate of Registration No. date and place of issue
14.
Reasons for non-re-exporting the vehicle out of India and circumstances
under which the import is effecting the surrender:
15.
If the reason is due to damage caused to the vehicle on account of accident
(i)
details of accident in brief.
(ii)
Particulars of Police report if any
526
I ………………………….the importer above named hereby declare that the
particulars furnished above are true and correct in every respect to the best of my
knowledge and belief.
I …………the importer above named hereby transfer and surrender the motor
vehicle/motor car, the particulars of which are given in Column 8 above for the
reasons stated in Columns 14/15 to the Government of India unconditionally and free
of all incumbencies and expenses and the title thereto shall vest in the said
Government. I also agree for the disposal of the said motor vehicle/motor car by the
Customs Authorities in a manner whatsoever under any law for the time being in
force in India.
I …………… the importer above named hereby further declare that the
aforesaid motor vehicle/motor car is my own property and that no one else either in
India or abroad ha any claim whatsoever over the said vehicle/car, and undertake to
settle all claims which may be made by any person in respect of the surrender in of
my car and any compensation which may be demanded in respect thereof.
SIGNATURE OF IMPORTER
Annexure V
1.
Quarterly statement regarding imports under the convention.
2.
Quarterly statement of re-exports.
3.
Quarterly statement of re-exports in respect of imports made through
other Custom Houses.
4.
Quarterly statement of exports under the convention.
5.
Quarterly statement of re-imports under the convention ; and
6.
Quarterly statement of re-imports in respect of exports made through
other Custom Houses.
527
(I)
IMPORT
Sr. No.
Passengers/Sponsors/Event‟s
I.T.P.O. No.
Description of
C.T.H.
(Indian Trade promotion
Name and address
goods
No.
Organisation)
(1)
(2)
(3)
(4)
(5)
Carnet No.
Value Rate of duty Amount of Duty
Thoka/Registration
Carnet issuing
No. & Date
(6)
(7)
Date by which
Demand Notice
(8)
(9)
Name & signature
(10)
Name & signature
of A.C.O.
of A.C.S.
authority
(11)
Remarks
(if
any)
to be issued
(12)
(II)
EXPORT
(Examining Officer) (Appraising Officer)
(13)
(14)
(15)
528
Sr. No.
Date of Actual
Port from which
Export
Date
of
issue Cash No.
Export
exported
voucher
No.
(1)
(2)
(3)
of Demand
date
Notice
(4)
(5)
(6)
Name & signature
Name & signature
of A.C.O.
of A.C.S.
(7)
(III)
(8)
RE EXPORT
Date of Actual Export
Export through
Exportation
Demand Notice
Name and sign
voucher No.
(E.O.)
issued
of
A.C.O.
529
(1)
(2)
Name and sign
of A.C.S. (A.O.)
(6)
*******
Remarks
(if any)
(7)
(3)
(4)
(5)
530
CHAPTER –TWELVE
12.
SHIP‘S STORES
12.1. PRELIMINARY
Stores has been defined under Section 2 (38) of the Customs Act, 1962,
meaning as “goods for use in a vessel or aircraft and includes fuel and spare parts
and other articles of equipment, whether or not for immediate fitting”.
By the above definition it is clear that anything which is going to be used or
consumed in a vessel or aircraft is to be termed as stores or ship‟s stores. This also
includes items intended for human consumption on board such as provisions, daily
bazar, soft and hard drinks, tobacco etc.
The provisions governing the ship‟s stores have been laid down in Section 86
to 90 of Chapter XI of the Customs Act, 1962.
12.2. WAREHOUSING OF STORES WITHOUT ASSESSMENT
Section 85 of the Act stipulates that if any imported goods are entered for
warehousing and if the importer makes and subscribes to a declaration that the
goods are to be supplied a stores to a vessel or aircraft without payment of duty
under these provisions, the proper officer may allow such goods to be warehoused
without the same being assessed to duty.
TRANSIT / TRANSHIPMENT OF STORES
Sub-Section (1) of Section 86 specifies that any stores imported in a vessel or
aircraft, may remain on board such vessel or aircraft, without payment of duty,
while it is in India. The Central Government has issued the following regulations
in this regard. –
531
12.3. Imported Stores (Retention on Board) Regulations, 1963
In exercise of the powers conferred by section 157 of the Customs Act, 1962,
the Central Board of Revenue hereby makes the following regulations, namely: 1. Short title. – These regulations may be called the imported Stores
(Retention on Board) Regulations, 1963.
2. Consumable stores on board to be sealed. – Any imported stores on
board a vessel arriving from a foreign port or an aircraft arriving from a foreign airport
may remain on board such vessel or aircraft without payment of import duty leviable
thereon during the period such vessel or aircraft is not a foreign-going vessel or
aircraft, subject to the condition that where such stores are consumable stores –
(a) in the case of alcoholic liquor, cigarettes, cigars and pipe tobacco, such
stores are kept under Customs seal;
(b) in the case of consumable stores other than those specified in clause (a)
such of other stores are likewise kept under Customs seal:
Provided that if the proper officer is satisfied that it is not practicable so to do,
he may, after taking inventory of such other stores, allow them TO remain on board
without being put under Customs seal.
3. Customs seal not to be broken. – Where any stores have been kept
under Customs Seal, such seal shall not be broken until the vessel or aircraft
becomes a foreign-going vessel or aircraft.
[
01.02.1963 ]
C.B.R.
Notification
No.
57-Cus.,
dated
532
12.4. Transfer of Stores under Section 86(2) of the Customs Act,1962
Sub-section (2) of Section 86 of the Customs Act, 1962, permits the transfer
of any stores imported in a vessel or aircraft, with the permission of proper officer as
stores, to any vessel or aircraft for consumption thereon provided the latter is either a
foreign going vessel or aircraft or such stores are for consumption on bond a ship of
Indian Navy or are as per Section 90 of the Customs Act, 1962 or the Agents shall
apply for the services of the officers required to supervise the transaction and shall
pay the fees leviable under the overtime rules.
12.5. CONSUMPTION OF STORES ON BOARD A VESSEL OR AN AIRCRAFT
Section 87 of the Customs Act, 1962, stipulates that any imported stores,
other than those meant for the Indian Navy on board a vessel or aircraft may, without
payment of duty, be consumed on thereon as stores during the period such vessel or
aircraft is a foreign-going vessel or aircraft.
The Section clearly prohibits consumption of imported stores, without
payment duty on board a vessel or aircraft which does not have foreign-going
character. The imported stores meant for Indian Navy have been dealt with in
Section 90.
Section 90 (1) of the Act stipulates that imported stores for the use of a ship of
the Indian Navy as well as imported stores supplied free by the Govt. for the use of
the crew of a ship of Indian Navy, may, without payment of duty be consumed on
board a ship of the Indian Navy.
In view of consumption of imported stores free on board a foreign going
vessel and on board a ship of the Indian Navy, have a bearing on Section 69 and
Chapter X of the Customs Act, 1962.
533
Section 88 and Section 90 (2) of the Customs Act, stipulates that provisions of
Section 69 (which deals with the export of warehoused goods without payment of
import duty) and of Chapter X (which deals with the Drawback of duty) if the
Customs Act, shall apply to stores as they apply to other goods with slight
modifications.
The modification prescribed under these two Sections are –
a) for the words “exported to any place outside India” or the word “exported”,
the words “taken on board any foreign going vessel or aircraft as stores” or
“taken on board a ship of the Indian Navy” shall be substituted.
b) the case of drawback on fuel and lubricating oil taken on board any foreign
going vessel or aircraft as stores and in the case of Navy also, sub-section
(1) of the Section 74, of the Act shall have effect as if words “ninety eight
percent” have been substituted by the words “the whole”.
12.6. Ship stores of daughter vessels engaged in lightening of mother vessels
The Board has recently examined the issue of assessment of ship stores of
“daughter” vessels engaged in lightening of “mother” vessels. After reviewing the
practice at various ports and also various court cases and orders of the Tribunal on
the leviability of duty on stores supplied to “daughter” vessels, it has been decided
that in respect of “daughter” vessels which arrive from foreign ports for the purposes
of lightening “mother” vessels and which go back to foreign ports thereafter, no duty
shall be charged on ships stores consumed on the “daughter” vessels during their
lightening operations. If the same vessel is, however, diverted to coastal run, it would
then be treated as coastal vessels and duty would be chargeable on stores
consumed by it.
[ Ministry‘s letter F. No. 450/109/92-Cus. IV, dated 24.12.1992 ]
12.7. Check on Stores of Foreign Going Vessels in Port
534
(a)
The Section Officer in whose Section the foreign going vessel has berthed
shall place all arms ammunitions, explosives, spirits, tobacco, cigarettes and
valuable stores under seal and see that no excessive stocks of stores such as liquor,
tobacco, cigarettes etc. remain unsealed in the bars, lockers and store-rooms. A
record of the lockers, store rooms etc., placed under seal and the Number and letter
of the seal used, shall be recorded in the store-list. The stores required for
immediate use of the personnel of the ship may be left unsealed. The quantity of
such stores shall be decided by the Section Officer at his discretion on the basis of
the number of Crew.
(b)
If the vessel moves from the jurisdiction of one Section Officer to that of
another, the store lists with records thereof shall be immediately sent to the latter.
(c)
(i) On receipt of the store list, the Section Officer shall check the sealed stock.
The issues already allowed should have been noted in the store list. All subsequently
issues, shall be noted against the items in the Store list. The Section Officer shall
also check a percentage of other stores. Wherever such checks are carried out, the
Section Officer shall endorse the Store list accordingly.
(ii) After the necessary checks and verifications have been completed the
Section Officer concerned shall sign the prescribed certificate on the Store list and
endorse a similar certificate on the duplicate manifest of the Stores, filed if any, and
shall submit special report to the Assistant/Dy. Commissioner with regard to any
material discrepancies noticed by him. A note regarding the submission of such a
report shall be made in the store list and the duplicate Manifest of stores if submitted.
(d)
During the Vessel‟s stay in Port, the seals on the Bonded lockers etc. should
be frequently checked by the Section Officers., and the fact indicated in the diary
maintained in the Section. In case of suspicion that the seals have been tampered
with or otherwise broken, the matter should be immediately reported to the
Preventive Superintendent on duty, who shall order a complete inventory of the
Store before initiating any action.
(e)
The Divisional Preventive Superintendent should exercise control through a
frequent check of the Section Diaries and check at least once during vessel‟s stay in
port, the account of stock of bonded stores as maintained on Board and the store list
of the vessel. The Divisional Superintendent should endorse the records every time
535
such check is carried out. Particulars of such checks should also be recorded in their
diaries for information of Assistant Commissioner, Preventive.
(f)
On the day preceding a vessel‟s departure for a foreign or customs port the
Preventive Officer shall sign the certificates and the store list as to the stores,
equipment and private property remaining on board after verifying the particulars of
stores or other articles(i)
issued for consumption on board, or
(ii)
landed for home consumption or warehousing, or
(iii)
transferred to another vessel, and
(iv)
received on board during the vessel stay.
After the vessel‟s departure the copies of the store list duly certified shall be
forwarded
to
the
Manifest
Clearance
Department
through
the
Divisional
Superintendent.
12.8. Issue of stores during the vessels stay in port--quantum thereof.
All issues of stores should be made against the written requisition from the
Master of the Chief Steward or the Ship‟s Officer in charge of the Stores.
During the vessel‟s stay in the port, the quantum and condition of issue of
liquor, cigarettes tobacco from the sealed bonded stores may be determined by the
respective Customs Houses taking into consideration the number of officers and
crew of the vessel and restrictions imposed by the State Government and local
authorities. It should be ensured that the issues at a time are in reasonable
quantities for consumption of the ship‟s personnel. The bottles of spirits such as
whisky, Brandy etc. should be issued in open condition after breaking the
manufacturers‟ seals.
12.9. Caterer‘s stores on Board – Check of
536
On arrival of the vessel in the port, caterers on board, shall furnish to the
Boarding officer or to the Preventive Officer in whose Section the vessel has
berthed, a complete list of stores belonging to them. The officer concerned shall
check a percentage of the stores as far as possible with the list and seal articles
such as cigarettes, tobacco, liquor, wines etc., Prior to the vessel‟s departure, the
Preventive Officer shall re-check the articles with the list and report discrepancies, if
any, to the Assistant/Dy. Commissioner through the Divisional Superintendent for
orders. The list shall finally be filed with Import general Manifest (store list) of the
vessel.
12.10.
Serving of dutiable items during parties on board a Foreign/Indian
navy vessels
Duty is leviable on the quantity of dutiable stores served to persons not borne
on the books of Indian Naval Ships, on the occasion of parties held on such ships.
However, the information furnished by the Commander of the vessel with regard to
the quantity served to non-entitled persons may be accepted without any check or
verification. If it is felt that this concession is being misused, the matter may be
reported to the Board/Ministry for further consideration.
As regards foreign naval vessels, though the duty is legally leviable on the
dutiable stores served on board a foreign naval vessel to persons not belonging to
the ship, yet in view of the practice being followed in some other countries and with a
view to avoiding impolite strictness in enforcement, no objection may be raised to the
serving of limited quantities of Bonded goods to persons not belonging to these
vessels, on the occasion of parties held on board such vessels. Custom House shall
keep themselves informed that there is no abuse of this courtesy.
[ M. F. (DR) F. No. 21/9/56-Cus. IV/VI dated 25.6.57 ]
12.11.
Cocktail parties on board Merchant vessels by Steamer Agents
537
When shipping agents are permitted by the Customs House to hold cocktail
parties on board the vessels under their agency, they shall be required to produce a
Custom Clearance permit from I.T.C. authorities for bonded stores required for
consumption at the party and also produce the requisite permits granted by local
Excise authorities for excisable and/or prohibited goods. The stores consumed on
such occasions shall be chargeable to duty.
In such cases the agents are asked to deposit with the Custom House, as
revenue deposit, an amount which shall cover the duty leviable on the bonded stores
intended for use during the party. Final duty on actual consumption shall be adjusted
against the deposit on the Steamer Agents filing a bill of entry. The Preventive
Officer in charge of the vessel shall intimate to Office Superintendent, the bonded
stores taken out from the stocks for consumption and the stores actually consumed.
The unconsumed stores shall be placed back into the Bonded store room. Part
bottles shall be charged. In ports where any local prohibition and restrictions in
respect of consumption of alcoholic liquors apply, the vessel‟s agents shall produce
the requisite permission from the State authorities.
12.12.
Ship‘s stores and equipment – liability to import duty on
transference from foreign trade to coasting trade
a)
When a vessel is transferred from Foreign Going trade to the Coasting trade,
as defined Sec. 2 (21) of Customs Act, 1962, the consumable stores and other
goods such as provisions, oilman‟s stores, liquor, tobacco, cigars, cigarettes,
consumable articles (not forming part of vessel‟s equipment such as canvas, oil
paints, varnish etc.) would be liable to payment of import duty. In the case of such
transfers to Coastal Trade where a vessel, which has arrived with foreign cargo, after
discharge, proceeds in ballast to a Custom Port for picking up coastal cargo, without
being succeeded by a foreign voyage, and where a vessel after unloading the
foreign cargo loads coastal cargo without any indication of the succeeding voyage
being a foreign one, duty on stores would be charged from the date the vessel has
completed the discharge of her foreign cargo at the first Indian Customs Port of
arrival for her subsequent coastal run. The exact time of the completion of the
538
discharge of foreign cargo is the time when the last sling of the cargo is landed as
recorded by the Port Trust/Port Commissioner‟s staff in charge of the section where
the vessel is working. The Preventive Department shall furnish a list of all vessels
reverting to coastal run to the Import Department once every week to enable Import
Department to keep a watch on the vessels from which duty on ships stores is due.
b)
A NIL report shall also be furnished to ensure that no vessel has escaped
scrutiny.
c)
The above principle is also to be applied for the purpose of shipping stores
ex-bond. In such case, inventory of stores on board the vessel has to be taken by
the Preventive Officer.
d)
At the time of transfer from foreign run to coastal run, however, articles
forming part of the equipment of the vessel, upto the extent the vessel may
reasonably have on board, should not be charged to duty. The articles forming part
of the vessel‟s equipment should fall under any of the heads in the list below: Articles not covered by the list shall also be considered as ship‟s equipment
and exempted from duty provided they are verified to be so and specific orders of the
Assistant Commissioner of Customs. Appraising Department are obtained in each
case.
Doubtful cases only shall be referred by the Assistant Commissioner,
Appraising Department to the Commissioner.
List of articles that ordinarily comprise Ship‘s equipment
1. Telescopes, Binoculars and Sextants.
2. Barometers.
3. Direction finding apparatus including compasses.
4. Line throwing appliances.
5. Signals all kind i.e. storm danger., Distress, Fog etc.
6.
Radio
Telegraph
installation.
7. Auto Alaram
8. Clocks
9. Logs.
10. Emergency Lights.
539
11. Lamps all kinds, viz. signaling masthead, etc.
13. Fire fighting appliances.
12. Lights, green and red.
14. Ensigns and flags.
16. Ropes, cables, hawsers, wires, and chains for ship‟s use.
17. Hatch weds
and Boards.
18.Cook‟s Gallery. 19. Parts of engines.
20. Fire arms (if declared in the
stores list) including gunpowder, explosives and cartridges in sufficient quantities. 21.
Spares anchors.
22. Medicine Chest. 23. Derricks. 24. Fire bars. 25. Tanks for oil, water etc.
26. Rafts and Boats.
27. Hardware, Ironmongery and tools in sufficient
quantities.
28. Life saving appliances. 29. Deep sea sounding appliances.
30. Dunnage wood and mats (These shall be liable to duty if landed and cleared).
e)
In addition to these articles, there would be spare articles of ship‟s furniture,
apparels, etc. Any excesses over the normal requirements of the vessel should be
subject to duty.
f)
The personal property including arms and ammunition of the officers and crew
of the vessel shall be dealt with in accordance with the Baggage Rules in force and
duty levied, if any. In the case of restricted articles like arms and ammunition and
wireless sets it should be ensured that articles are covered by the appropriate
licences issued by Police authorities etc and are with the owners.
g)
In the case of vessels stores landed either as condemned or for home
consumption shall be liable to import duty unless bonded for re-export to a foreign
port.
12.13.
PROCEDURE FOR CONVERSION OF VESSELS FROM FOREIGN
TRADE TO COASTING TRADE
The following procedure is laid down for conversion of vessels from foreign to
coastal run and vice versa:
540
1)
Prior to applying for conversion of vessel from foreign to coastal, Steamer
Agent should obtain necessary licence from D. G. Shipping as per Section 406/407
of Merchant Shipping Act 1958.
2)
Whenever vessels in the foreign run convert to coastal trade, the steamer
agent should present an application in triplicate to the Assistant Commissioner of
Customs, Export Department, requesting for permission for conversion and also
services of a preventive officer for inventorying the ship stores and the personal
property of the crew members on board the vessel. The application should indicate
the estimated period of coastal run, the itinerary of coastal voyage if possible, and
also whether the steamer agent does not wish to pay duty on the entire quantity of
ship stores carried by the vessel, he should indicate in the application the quantity of
ship stores he wishes to withdraw for use on board the vessel.
3)
At the time of conversion from foreign to coastal run, the steamer agent shall
also file a Bill of Entry in the Export department for payment of customs duties on the
full quantity of ship stores or the quantity of ship stores estimated to be consumed
during the coastal run (as the case may be). If the duty is recovered not on the full
quantity of stores on board but on a part quantity, the assessment of the Bill of Entry
at this stage shall be provisional. Provisional assessment shall be at an amount
which is 110% of the duty leviable on the quantity estimated to be consumed. If duty
is being collected on full quantity, assessment of the bill of entry shall be done only
after receipt of certified inventory from the Preventive department vide provisions of
paragraph 5.On receipt of the Bill of Entry in the Custom House, the Export
Department shall assess the bill of entry and return the same to the Steamer Agent
for payment of duty.
4)
The permission for conversion shall be granted only after the payment of
amount assessed on the Bill of Entry vide paragraph 3. Permission for conversion
can be granted prior to payment to those Steamer Agents who maintain a provisional
deposit account with the customs and authorize the customs to debit their provisional
deposit account with the amount assessed on the Bill of Entry. In other cases,
permission for conversion without payment would be granted only by the
Commissioner of Customs (Export). Adequate reasons should exist for permitting
conversion without payment of dues assessed on the Bill of Entry.
5)
The duplicate/triplicate copies of the application shall be forwarded by the
Export department to the Assistant Commissioner (Preventive) for deputing a
541
preventive officer for taking the inventory as per the Steamer Agent‟s request. If the
Steamer Agent in his application has indicated his desire to withdraw only a portion
of the total stores on board the vessel, the Preventive Officer concerned should
supervise the withdrawal and seal the remaining stores on board. The quantity
withdrawn and also the quantity sealed should be clearly indicated in the inventory
list prepared by the Preventive Officer. In regard to oils on board, the inventory of
furnace oil, diesel oil, lubricant oil, etc. should be given separately. It should be
clearly mentioned in the inventory whether the stock is duty paid or non duty paid.
Inventory of the private property of the crew would similarly be taken by the
Preventive Officer. For liquor, cigarettes and other high value items, the brand
names should also be mentioned in the inventory. The inventory list of ship stores
and private property of crew members prepared by the Preventive Officer should be
countersigned by the Master of the Vessel or his agent and by the Preventive Officer
making the inventory.
Five copies of the inventory shall be prepared. The preventive Officer
concerned shall forward one copy to the Export department, another to the
Preventive department. One copy shall be handed over by Preventive Officer to the
Steamer Agent and two copies to the Master of the Vessel – one for his record and
second for handling over to the Preventive Officer at the port of reversion to foreign
run.
6)
After taking the inventory, the Preventive Officer should forward the triplicate
copy of the Steamer Agent‟s application, with an endorsement that Port Clearance
may be granted, to the Coastal Trade Establishment, for grant of Entry Outward to
the coastal vessel.
7)
As regards private property of the crew, the Steamer Agent would give an
undertaking to the Preventive Department to the effect that the Baggage would be
cleared as per the Rules. This undertaking shall be cancelled when a certificate from
the Custom House, where the vessel is reverted to foreign run, is produced showing
that all the private property of the crew inventoried at earlier Custom House has
been duly accounted for.
542
8)
If at an another Indian port, the vessel on the coastal run needs any further
bonded stores, the Steamer Agent should make a similar application at the port
concerned and pay duty on such stores as are taken out of the bond.
9)
At the time of reversion to foreign run, the Master of the Vessel or the
Steamer Agent should make an application to the Assistant Commissioner of
Customs along with a copy of the application to the Preventive Department
requesting for the services of a preventive officer for inventorying the stores and the
private property of crew on board the vessel.
10)
Five copies should be made of the inventory. On completion of inventorisation
a copy shall be retained in the Preventive department, one copy would be forwarded
to Assistant Commissioner of Customs to whom application was made for reversion
of the vessel to foreign run, one copy shall be sent to the Export department of
earlier Custom House and two copies shall be given to the Steamer Agent or the
master of the vessel. On the basis of the copy of final inventory and the triplicate
copy of the Bill of Entry the Steamer Agent would file a refund claim in the Export
Department of the earlier Custom House.
11)
The refund application so received shall be dealt with in the Export
department in the usual manner after considering the same along with the copy of
the final inventory forwarded by the Preventive Department of the port of reversion.
12)
In so far as the private property declaration is concerned, the Custom House,
at which the reversion to foreign run takes place, should verify that the private
property has been properly accounted for, either by retention on board by the crew
or by its clearance through Customs in that port or in any other intermediate port in
India. A certificate to that effect shall be issued by the Preventive Department to the
Steamer Agents so that the same could be produced by the Steamer agent before
the Preventive Department of earlier Custom House in order to get his undertaking
cancelled.
ANNEXURE ‗A‘
(On Steamer Agent‘s Letter Head)
We, M/s …………………………………………………… the local agents to the
vessel
………………………………..
now
lying
at
the
port
of
…………………………………hereby undertake that the private properties of the
543
officers/crew on board the said vessel now reverted to coastal trade at
……………………shall not cause to be landed without proper clearance from the
Custom House through which the said officer/crew shall get signed off during the
period of coastal voyage or the baggage of the crew members re-exported when the
vessel reverts to foreign voyage, which ever is earlier.
A list officers and crew on board the vessel now under reversion is enclosed.
(AS AGENTS)
PLACE:
DATE:
[ Standing Orders No. 7347 dated 20.01.1998 and No. 7484 dated 27.10.1999
issued by Commissioner of Customs (EP), Mumbai, In File No. S/6B-21585/97
EXP ]
12.14.
Transfer of stores from a Vessel in the Foreign trade to a vessel in
the coasting trade
Transfer of stores from a vessel in the foreign trade to a vessel in the coasting
trade shall only be permitted on production of a completed Bill of Entry showing that
duty has been duly paid on such stores and on production of a Shipping Bill
authorising shipment of the goods on board the receiving vessel.
In cases, however, where either of the vessels is due to depart within 48
hours of arrival of the other, the transfer of provisions and stores may be permitted in
anticipation of payment of duty provided that the Agents have executed a standing
guarantee on stamped paper undertaking to pay duty and to deliver a completed Bill
of Entry, showing credit of such duty, in the Preventive Department within 48 hours
in case of transfer of such stores. The procedure for dealing with such transfer
applications shall be the same as described above. In addition to this –
544
(a)
the preventive officer supervising the discharge of the stores shall endorse
against the relative items in the application or the accompanying list- the quantity,
weight and value of each description of stores. He shall also make a note of such
transfer in both copies of the Ship‟s store list after the stores have been discharged.
(b)
The Preventive Officer in charge of the receiving vessel shall certify shipment
of the goods under his supervision on the transfer application and then forward the
document to the Divisional Superintendent‟s Office for entry of the date of shipment
against the relative item in the Register.
(c)
When the transfer has been effected, the Agents shall prepare a Bill of Entry
and present it in the Import /Appraising Department for “noting” and assessment of
duty leviable on the stores. After duty has been paid and credited to Government,
the duplicate Bill of Entry shall be delivered in the Divisional Superintendent‟s Office.
The officer concerned shall enter the cash number and date of payment of duty
against the relative item in the special register of transfer applications. The Bills of
Entry shall then be forwarded to the `Manifest Clearance Department‟ for check and
record for the relative ship‟s file. Any case in which duty is not paid within the
prescribed time limit should at once be brought to Divisional Superintendent‟s notice
for necessary action.
12.15.
(i)
Transfer of personal effects
When the personal effect of a ship‟s officer or seaman are transferred from a
vessel in the foreign or coasting trade to a vessel in the foreign trade or from one
vessel to another in the coasting trade, special care should be taken to see that a
note of the transfer of any restricted goods, e.g. arms and wireless sets, etc., is
made in the respective store lists or in the case of arms or ammunition transferred
from or to a General Pass Vessel, in the register maintained on board under Rule 4A
of the General Pass Rules and to verify that such articles when transferred to
vessels in the coastal trade are covered by the requisite licences or permits.
(ii)
(a)
The instructions regarding transfer of personal effects of officers and
seamen from a
545
vessel in the foreign trade to coastal trade shall be
as per Baggage Rules
applicable.
(b)
When such transfer is effected at night or any other occasion, when
duty leviable, if any, cannot be conveniently collected or when there is nay doubt as
to whether the vessel to which the owner is transferred is on coastal trade, a report
of the dutiable articles, if any, included in the personal effect transferred from one
vessel in the foreign trade to another which may or may not be in the coastal trade,
shall be made to the Assistant/Deputy Commissioner (Preventive) through the
Divisional Superintendent for further action.
(iii)
In all cases in which articles are transferred necessary action should be taken
to ensure that an entry is made on the store-list of the vessel on which the articles
have been shipped and that note of the transfer is made against the corresponding
entry, if any, in the store-lists of the vessel from which they have been removed.
(iv)
When a Ship‟s officer on a foreign going vessel on transfer to another foreign
going vessel in port wants to remove his personal effects with him, such transfer
shall be effected on an application, countersigned by the Agent/ Master, to the
Divisional Superintendent and that he shall be escorted by a Preventive Officer if the
personal effects contain dutiable articles.
12.16.
Vessels in coastal trade which have reverted to Foreign Trade
Temporarily and re-enter the Coastal Trade – Procedure regarding
(a)
In case a vessel (which, at the time of her transfer to the foreign trade, had
duty paid stores on which no drawback was claimed ) re-enters the coastal trade,
duty shall be levied on the articles shown in the foreign stores list after deducting
therefrom the following: (i)
The stores on board at the time the vessel left the coastal trade and entered
foreign trade (without reference to the length of time that has elapsed between the
vessel‟s entry into the foreign trade and her subsequent re-entry into the coastal
trade).
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(ii)
Shipments, if any, from duty paid stock made on Shipping Bills after the
vessel left the coastal trade.
Note: Care should be taken to ensure that shipments of spirits etc. out of
bond are not so set off.
(iii)
Local purchases of cigars, cigarettes, tobacco etc. for which cash receipts are
produced.
(b)
When the vessel in the coastal trade is initially cleared for a foreign port, the
Agent may apply to Assistant Commissioner (Preventive) at least 2 days
before the vessel sails for such foreign port, for the services of a preventive
officer to take inventory of the stores on board for the purpose of claiming
exemption from payment of duty thereon at the time of vessels return to the
coastal trade. The Preventive Officer shall take an inventory of the stores in
triplicate in the prescribed store-list form which shall be applied by the Agents.
He shall sign all the copies of the inventory and endorses them as follows:
“The stores mentioned in this inventory were on board the S/S
……………………………before she sailed for ……………………(…...Preventive
Officer‟s signature……) and forward to Preventive Office for obtaining countersignature of Assistant Commissioner (Preventive). The original copy shall be
delivered to the Agents on payment of the necessary fee and the duplicate and
triplicate retained by the Preventive Department.
(c)
In the case of personal effects of the ships officers and crew of such vessels
the latest Baggage Rules, shall apply.
12.17.
Unconsumed stores on board vessels reverted from coastal to
foreign trade
The Master or Agent claiming drawback on such stores shall apply to the
Asst. Commissioner of Customs, Preventive Department, two days before the
547
departure of the vessel to foreign port for the services of a Preventive Officer to take
an inventory of the stores remaining on board. The Preventive Officer deputed for
the purpose shall examine all the stores on which drawback is claimed, enter them
in the prescribed store-list form, in duplicate which shall be supplied by the Master or
the Agent concerned and seal them with the customs seals. These seals shall be
examined before the vessel sails and the Preventive Officer concerned shall then
endorse both the copies of the store-list as follows:“Stores examined and sealed on …………………………….. Found seals
intact before the departure of the Vessel,” and forward them to the Preventive
Department for the countersignature of the Asst. Commissioner (Preventive) and
consideration of the claim of Drawback by the Drawback Department.
12.18.
Coastal Vessels with General Pass-touching a foreign Port and
reverted to coastal trade- collection of duty:
(a)
Vessels on coastal trade under “general pass” touching foreign port are
allowed to bunker Fuel oil from bond, when proceeding direct to a foreign port
and may also take bonded stores. These vessels may also take fuel oil and
other dutiable stores at foreign ports.
(b)
On reversion to coastal trade which occurs at the first Indian Port, duty is
leviable on all the bonded stores including fuel oil remaining on board and
also on all the stores, taken at foreign ports, including purchases of dutiable
goods by the officers and crew.
(c)
The Boarding officers should obtain from the Master of the vessel a list
including fuel oil and private property of the officers and crew with all details
for purposes of assessment. The list should be verified by a physical check of
a few representative items, if it is not possible to check the entire stores.
(d)
The Import Department on receipt of the list from the Preventive Section shall
ask the steamer agents to file a Bill of Entry in respect of dutiable items, which
shall be assessed by the Appraising Section. The Superintendent shall see
that the Boarding Officers take necessary steps for obtaining the store list,
which should be forwarded with report to the Import Department through the
Assistant/Deputy Commissioner (Preventive).
548
12.19.
Duty on Fuel Oil supplied ex-bond stock to vessels which are in
the foreign run but which subsequently divert to coastal run
The Import Department shall intimate the fact of reversion from foreign to
coasting trade and vice versa to the Export and Preventive Departments, to enable
them to take such action as such reversion may call for . A “FREE” shipping bill shall
be filed in the Export Department to cover shipment of excise bonded oil as ship‟s
stores, with duplicate and triplicate copies of AR-4 forms. The words ”Shipment from
excise bonded stock” may be superscribed conspicuously on the shipping bill. (In
respect of shipment of warehouse goods, on the Customs side, (S.P.No. A R-4 No.,
Grade of oil, quantity shipped, source of supply) etc. shall be entered at the
appropriate place in the vessel‟s store list, in the same manner as stores supplied
from Customs bonded stocks are entered. These particulars should be entered in
the copy retained in the Preventive Department and also in the “Circulating Copy” if
the vessel is touching Customs Port (s) on route to a foreign destination. If the
vessel is expected to touch any Customs Port (s) en-route to foreign destination, the
certifying Preventive Officer should mention in the certificate the names of all such
ports and in the same order as mentioned in the port clearance of the vessel, instead
of mentioning only the foreign port of destination.
If a vessel reverts from foreign to coastal trade at any of the Custom Ports enroute to a foreign destination, the Custom Authorities at the port of reversion shall
forthwith intimate the Central Excise Department which permitted supply of oil exbond under AR-4 procedure, any such change in the character of her voyage
together with such particulars as grade and quantity of oil on which excise duty may
be recoverable.
[ Ministry‘s letter F.No.55/31/64-Cus IV dtd. 23.08.1965 ]
12.20.
Indian goods supplied as Stores
549
Section 89 of the Customs Act, 1962, prescribes that goods produced or
manufactured in India and required as Stores on any foreign going vessel or aircraft
may be exported free of duty. The quantity of such goods shall be determined by the
proper officer depending upon the size of the vessel or aircraft, number of
passengers and crew and the length of outward voyage or journey of the vessel
aircraft.
12.21.
Stores unfit for Human consumption
Stores certified unfit for human consumption by the Port Health Officer may
be passed free of duty and destroyed by the city/port authorities under Preventive
supervision.
12.22.
Removal of Refrigerated Ships Stores from the Vessel, whose
refrigerating system has gone out of order, to cold storage in the city
The steamer agents concerned should make an application for removal of
such goods to the bonded freezer premises and storage there pending reshipment,
attaching complete and detailed list of the stores which are proposed to be removed
giving description, unit, quantity, weight and value (wherever possible). They should
enclose along with the application a letter of guarantee Bond on necessary stamp
paper, binding themselves to pay duty on such of the stores as are not re-exported
within the stipulated time or are lost or missing or have deteriorated during storage in
the bonded premises and any penalty leviable thereon. The Asst. Commissioner
may allow the request, but before actual removal from the ship the Preventive Officer
should check up the stores with the detailed lists furnished by the steamer agents
and endorse the inventory to that effect and then escort the stores to the bonded
premises for storage. Endorsement in token of receipt should be made by the
Preventive Officer iincharge of the Bond, if posted or by the bonder of the premises.
In the bonded room these stores should be kept segregated from the other bonded
550
stores in the premises. As far as possible, a separate room should be provided for
storing such stores.
At the time of removing the stores back to the docks for shipment, the officer
posted for the job, shall check up the items again and see that they tally with those
originally allowed to be kept noting down any discrepancies in the lists. He should
then escort the goods to the docks and leave them in the charge of the Section
officer who should supervise the shipment and make an endorsement to that effect.
(If the shipment is effected out of office hours, the officer supervising the ship should
supervise shipment). The letter of guarantee bond should be cancelled after preaudit.
REMOVING SHIP‘S GEAR OR EQUIPMENT INTO TOWN FOR REPAIRS
(a)
Articles forming part of Ship‟s gear or equipment shall be permitted to be
removed into town for purposes of repair without payment of duty. The facility for
passing such articles without payment of duty shall be allowed only in the case of:
(i)
The firms and merchants of repute who have a permanent deposit in the
Custom House as security for payment of duty and who have executed a
standing guarantee/bond in the prescribed form for due compliance of the
Rules.
(ii)
Other firms and merchants who execute a separate guarantee/bond in the
prescribed form on the occasion of each application.
(iii)
The local steamer Agents who are allowed to remove gear and equipment for
repairs without payment of duty from vessels under their agency through their
authorised firms have also to execute a guarantee bond in the prescribed
form to pass out any articles or set of articles at one time.
(b)
The grant of this concession shall also be on condition that the articles
being re-shipped normally within a period of 90 days. The time limits can be relaxed
on the merits of the case by the Assistant Commissioner of Customs.
(c)
(i) Articles so passed on machinery passes/repair passes or guarantee/bonds
are treated as part of ship‟s equipment and therefore, (unless the ship is broken up)
are not liable to duty until it has been decided not to put it back on the ship. The
decision not to replace the articles should be taken before the expiry of the currency
551
of the repair pass/machinery pass in which case the valuation and assessment to
duty shall be done by the Appraising Department. During the currency of the repair
pass/machinery pass, the articles shall be treated as goods that have been imported
and recovery of duty on which is postponed and shall be entirely waived if the goods
are reshipped in due course. The reshipment could be effected on the same vessel
or other vessel under the same agency or belonging to the same owners.
( ii ) The amount of the permanent deposit shall be fixed by the Assistant/Dy.
Commissioner keeping in view and value of the transactions of each firm or
merchant and shall be liable to be increased or decreased in proportion to any
corresponding variation in the volume of such transaction.
( iii ) Application from new firms for this concession on long term basis shall not
be entertained until the firm concerned has worked for at least six months under
the Individual Guarantee system as provided for in sub-para a (ii) above and if
the bonafide of the firm do not come under question during this period of
probation. For this purpose the firm be required to furnish a statement of its
financial position. Confidential enquiries shall be caused to be made by the
Custom House to verify the financial stability and turnover of the firm. Income Tax
certificates may also be demanded and scrutinised. The firm should produce a
promise of regular orders from at least two major shipping companies.
( iv )
Individual Guarantee should be extended by Assistant/Dy. Commissioner
(Preventive), after satisfying himself as to the adequacy of the amount deposited
as security.
( v ) When articles are entered for removal under Para a (ii), the guarantees shall
be executed for an amount equivalent to twice the duty leviable on the value of
the articles entered for removal, and shall be stamped with a Revenue Adhesive
Stamp of the prescribed value.
( vi ) Any firm or merchant from whom a permanent deposit and a standing
guarantee/bond have been accepted and who is duly authorised by the local
Steamer Agent, executing a standing letter of guarantee with Customs allowing
the firm or merchant to operate for them under this concession, may remove such
articles into town for repairs under cover of a machinery pass in the prescribed
form in Pink colour which shall be prepared in quadruplicate and shall contain an
552
accurate specification of the description, quantity, type, serial number, maker‟s
name and value of the articles, to facilitate identification and show the name of
the vessel and the I.G.M. No. and name of the Gate or Bunder through which
they are to be passed. The original copy of the pass shall bear Court Fee Stamp
as prescribed at the port.
( vii ) The removal of such articles by other merchants or firms may be
effected under cover of the prescribed form of grantees in quadruplicate containing
the particulars as those described above. Only the Original copy of the guarantee
shall be stamped. In effect, however, in all 5 copies of the guarantee shall have to be
prepared i.e. one with the Revenue Adhesive stamps to be preserved in the Custom
House for observing the rules regarding custody of guarantee and 4 copies to serve
the purpose of removal etc. on the same basis as of machinery pass.
The disposal of the four copies of the machinery pass shall be as follows:
The original should be retained by the Section Officer or the Boarding Officer
the despatched to the Custom House after the vessel sails.
The duplicate should be taken from the party at the time of passing of the
machinery etc, by the Gate Officer or the Bunder Officer and sent to the Custom
House for registration.
The triplicate should accompany the machinery etc. at the time of reshipment
and should be returned to the Section Officer by the party. The Section Officer shall
then forward the triplicate and the original together to the Custom House
(Preventive) Department.
The quadruplicate shall be retained by the party.
(d) Removal of Articles
Before removal of items for repairs from a vessel, the firm shall make out a
repair pass/machinery pass in the prescribed form in quadruplicate. After the pass
has been duly completed by the firm and countersigned by the Ship‟s officer it shall
553
be presented to the Preventive Officer in charge of the Section where the vessel is
lying. The Section Officer shall satisfy himself that the details have been correctly
given on the pass or guarantee by check of the goods and then allow and supervise
landing. He shall endorse on all copies and impress the Custom Rubber stamp on
the duplicate and triplicate copies. He shall then return three copies to the applicant
retaining the original copy in the section with the other papers of the vessel
concerned. The section officer shall be constantly on the alert to ensure that no
items are landed and removed for repair unless necessary prior permission has been
accorded by him as indicated above.
If the officer has reason to believe that
altogether inadequate value has been entered against an item for the purpose of
passing it into town, he shall detain the articles for appraisement. Articles declared
as `Condemned‟ in the pass or guarantee shall be sent for assessment of duty at
once and allowed to be cleared on a Bill of Entry. If any of the articles specified in
the pass or guarantee are not landed to the passed out, the Preventive Officer shall
score out of the entry of the items under his initials with the consent of the applicant
or his representative. When he is satisfied that the documents are in order, he shall
endorse all four copies to show the items covered by them are allowed to be passed
into town.
When any articles or ship‟s parts are required to be landed for the purpose of
being shown as samples, templates or models, for purchase of manufacture of
similar parts, they may be landed on a Machinery pass but should be declared as
such on the Machinery Pass. On completion of the work, the parts so removed
should reshipped as provided in the Machinery pass Procedure.
(e)
The Gate Officer shall entertain a Repair Pass/Machinery Pass only after
verifying that the Section Officer has properly allowed landing of the articles and
duly endorsed and stamped the pass. He shall also check the signature of the
applicant against the list of authorised persons maintained at the gate. He shall
carry out a physical check of the goods in the lorry or other conveyance to satisfy
himself that they correspond with the declaration in the pass. He shall see that in the
case of gear or equipment which do not bear any marks, numbers or other distinctive
feature for easy identification, suitable mark or seal should be affixed to them. Where
this is not possible, it should be ensured that the same are fully described in the
554
covering machinery pass. The gate officer shall endorse the duplicate, triplicate and
quadruplicate copies. The duplicate copy shall be retained by him and be sent to
Office of the Preventive Department for registration and further action.
(f)
Reshipment of Articles
On return of the goods for reshipment after repairs, the Gate Officer shall check
the details with the Machinery Pass and the validity of the pass, before allowing
the items to pass in. The Gate Officer shall make necessary endorsement on the
triplicate and quadruplicate copies, bur return them to the applicant.
The Section Officer who shall, as far as possible, supervise the shipment or
otherwise verify by check on board that the goods have been duly reshipped. The
firm shall, after shipment, endorse the pass and obtain the signature of the ship‟s
officer in token of receipt. The two copies of Repair Pass/Machinery Pass shall then
be presented to the Section Officer for endorsement. The quadruplicate copy duly
endorsed, shall be returned to the firm. The triplicate shall be retained. This copy
along with the original pass from the ship‟s file shall be endorsed and returned to the
Preventive Officer to enable cancellation of the entry in the register. Should the
articles be reshipped on a vessel other than from which they were landed, or on the
same vessel on a subsequent voyage, the Preventive Officer incharge of the
receiving vessel shall endorse the triplicate and quadruplicate pass accordingly.
(g)
Part Shipment of Machinery Pass items
In the case of part shipment or if the goods have not been returned at all before
the vessel sails, the Section Officer shall send the original copy to the Office with
a report regarding part shipment or non-shipment of the goods. On receipt of the
report an entry shall be made in the register and special watch maintained, for
reshipment. Should such reshipment not take place before the validity of the pass
expires, the party should be called upon to pay the duty involved forthwith. In the
case of part shipment, the Section Officer after his endorsement shall return both
the triplicate and quadruplicate copies to the party.
The duties of the Section Officer as laid down in the above paragraphs, shall
also be performed outside the office hours by the officer posted on O.T. Basis in
charge of the ship, if the ship is working and by a special officer posted for this
555
purpose on prior application from the party, if the ship is not working otherwise. In
the event of vessel is not working or is in dry dock and any machinery items are to
be landed for repairs after office hours, services of a special Preventive Officer may
be obtained on application to the Divisional Superintendent on payment of usual O.T.
Fees.
After the check of the original repair pass/machinery pass or guarantee, the
special officer concerned shall forward the same to the Section Officer concerned to
be retained in the Section along with the ship‟s papers.
Items landed from Vessels in stream
The articles may be landed from vessels in stream and taken to prescribed
Bunders and gates for passing with prior permission of the Boarding Officer/attached
Officer in the same way as to the Section Officer in the Docks.
The Boarding
Officer/Preventive Officer shall retain the original copy of the machinery pass and
endorse the duplicate, triplicate and quadruplicate copies. These copies shall then
accompany the goods to the place of landing, serving as boat-note. Meanwhile, the
Boarding Officer shall send an advice to the gate through which the goods are to
pass out. The Original Pass shall be retained with the ship‟s papers and dealt with in
the usual manner at the time of sailing of vessel. If the vessel moves to the Docks,
the original machinery pass shall be sent to the concerned Section Officer along with
the other papers of the vessel.
The Machinery Passes/Repair Passes shall be of distinctive pink colour. All
firms on approved list and concession are required to have these forms printed and
bound in booklets.
These pass-books or repair pass books with printed serial
numbers in reasonable quantity as per requirement of the firm shall be presented in
the Customs House where the same shall be signed by a Preventive Officer and
thereafter returned to the firm for use. Proper record of issues and returns of these
books shall be kept by the firms and should be subject to surprise check by Customs
Officers. Each firm shall submit quarterly statement of the passes issued. These
statements shall be approved for such purpose by the Asst./Dy. Commissioner and
whose specimen signatures shall be kept at all gates with the Section Officer for the
purpose of check.
556
Supervision and checks by Divisional Superintendents
The Divisional Superintendents shall exercise proper checks on vessels, on
gear and machinery moving in the docks and also at the gates. The Superintendents
should see that the procedure is properly understood and followed by both section
and gate officers. The list of authorised persons should be maintained carefully at
each gate. Superintendents should frequently carry out examination of goods
passing out under Machinery Pass at the Gates themselves, and record the same in
their diaries for information of Asstt. / Dy. Commissioner.
No articles shall be permitted to be reshipped after lapse of the period of
currency of the relative passes or guarantees, until the import duty leviable has been
paid.
An extension of the period of currency of Machinery Passes/Repair Pass or
guarantees required in special cases may be granted by the Asst./Dy. Commissioner
on receipt, within the normally permitted period, of an application accompanied by
the triplicate and quadruplicate passes or guarantees from the firm or merchant
concerned, provided the articles are first examined and their condition and value
certified by the Appraiser, specially deputed for this purpose. When an extension is
granted all the four copies shall be endorsed accordingly and triplicate and
quadruplicate copies returned to the applicant.
Assessment and Recovery of Duty
Action to recover duty on articles not shipped is ordinarily taken on the expiry
of the period of the currency of the repair pass/Machinery Pass or guarantees. In
the case of condemned articles or of articles about which it has been decided not to
reship owing to their having been found unserviceable after removal or for any other
reason, it shall be incumbent on the firm or merchant to apply for the services of a
Customs Officer to check the valuation and to assess the duty leviable immediately.
When any article has not been reshipped before the expiry of the period of
currency of the pass, the Prev. Deptt. shall issue a memorandum in the prescribed
form calling on the firm or merchant concerned to arrange for check and valuation of
557
the articles and assessment of the duty within three days. A copy of this memo shall
be addressed to the Divisional Superintendents concerned to send the original pass
or guarantee if not already returned. In dealing with the application for assessment of
unserviceable articles, the Appraiser shall on being satisfied of the validity of the
claim, note the word `condemned‟ against the relative item on the triplicate and
quadruplicate copies of the Machinery Pass, appraise the articles, enter the value
and assess the duty under the appropriate items of the tariff.
(i)
On the articles being entered for assessment by the firm or merchant the
Appraiser concerned shall assess the articles to duty on the basis of value declared
in the relative documents or upon such increased value as may be estimated by him
on examination of the goods at the place where they are stored. No claim for
assessment on a value than that stated in the relative machinery pass or guarantee
shall be admitted in such cases except when the vessel from which the articles were
landed has not left port before the expiry of period of currency of the covering
document. After examination of the articles and verifying the particulars required for
purpose of assessment the officer concerned shall enter value and the rate of duty
applicable against the relative item in the triplicate and quadruplicate copies of the
machinery Pass to the party for payment of duty through Preventive department
where the Machinery Pass clerk shall calculate the duty involved and endorse all the
four copies of the machinery pass entering the particulars in the machinery pass
register.
(ii)
The date of delivery of triplicate and quadruplicate passes or guarantee, for
assessment of any item included therein shall be noted on the document as soon as
it is received by the Appraiser concerned. All entries relating to the valuation or the
rate of duty shall be made in red ink and shall be initialled and dated by the
Appraiser on all the copies of the pass or guarantee dealt with by him.
(iii)
The triplicate and quadruplicate copies of Machinery pass or guarantee
assessed under the procedure described in above shall be presented by the owner
within a week from the date of assessment to the Machinery Pass Clerk in
Preventive Department who shall compare them with the relative original and
duplicate copies and see that the details relating to the value of the articles and the
rate and amount of duty are correctly entered in the document. After the document
are found to be in order and if the duty assessed is recoverable by debit to the firm‟s
558
deposit account all the four copies of the machinery pass shall be forwarded to the
Accounts Department for adjustment. When, however, the duty is to be paid in cash
the four copies of the pass shall be sent to the cashier through a transit book in
charge of a Sepoy who shall be accompanied by the firm‟s representative.
After the duty has been paid or recovered by debit to the firm‟s deposit
(iv)
account, all the four copies of the pass, bearing the oval stamp in token of credit of
the amount shall be returned by the accounts Department to Preventive Department
where the clerk concerned shall enter the cash number and date of credit of duty
against the relative item in the register., and return quadruplicate copy of the pass or
guarantee to the owner and retain the other three copies.
Machinery passes shall be entered in a special register in the prescribed form
wherein all the particulars of Machinery pass shall be registered immediately on
receipt of the duplicate pass or guarantee in Preventive Department and
assigned serial No. of an annual series.
When the original and triplicate copies are received the papers shall be
submitted to Assistant / Dy. Commissioner (Preventive) for information and
cancellation of the item through supervisory head of the Department. The register
should be periodically checked by Assistant / Dy. Commissioner (Preventive) to
ensure that all items are duly accounted for and that necessary action is taken
against the firms in respect of goods not re-shipped in time.
The internal audit department shall
audit all the machinery passes and
guarantee covering articles which have been reshipped or otherwise accounted for
with the respective entries in the register. It shall also see that the procedure laid
down has been followed in all respects and that necessary action has been taken on
all items which have not been re-shipped before the expiry of the currency of the
Machinery pass.
The concession of passing articles of Ship‟s gear or equipment on Machinery
passes or guarantees into town for repairs without payment of duty shall be liable to
withdrawal without previous notice for any serious or frequent breaches of these
rules.
559
Articles forming part of ships stores, equipment and private property belonging to
ship‘s crew
Such articles and articles like band instruments and wireless sets whether
belonging to the ship or officers and crew of the ship may be landed for repairs and
passed without payment of duty on repair passes or guarantees in accordance with
the above procedure after making due notes in ship‟s store-list/private proper list of
the repair pass number. In the case of wireless sets so landed for repairs the usual
application to import wireless receiving apparatus need not be demanded so long as
the sets are returned to the ships before the latter leaves the port and are not used
during their temporary import into India. A declaration to the effect that the sets shall
not be used should be taken on the relative machinery pass or guarantee.
Form of standing guarantee
To,
The Asstt. Commissioner of Customs,
Preventive Department,
……………Custom House.
Sir,
In consideration of Commissioner of Customs allowing to us to remove into
town articles forming part of ship‟s gear and equipment for purpose of repairs
payment of duty under the Machinery Pass Repair / Pass Concession, we hereby
undertake.
1.
to abide by all rules and regulations under the Machinery Pass / Repair
Procedure,
2.
to pay duty, fine and / or penalty that may be imposed upon us by the
Customs Commissioner and to forfeit the amount of Revenue Deposit for any
breach of the rules for the time being in force or which may thereafter be
560
made from time to time by the Customs Commissioner in this respect and
also,
3.
to allow any Customs Officer to enter Workshop and / or office at any time to
check the articles lying therein with our office stock books.
Yours faithfully,
Proprietor.
ORIGINAL (with stamp)
Duplicate
Triplicate
Quadruplicate
(Name of the firm)
(Address of the firm)
File No……..
The President of India.
Know
all
men
by
we………………………………………..Ship
these
Repairs
presents
of
S.
that
S.
M.V………………………………………………………………………………...are
/
held
firmly bound to the PRESIDENT OF THE REPUBLIC OF INDIA, the sum of
Rs………………………………….to be paid, to the said President of the Republic of
India, his successor or assigns for which payment shall and truly be made.
We,……………………………………………………………………………………………
…………………………………………do
hereby
bind
ourselves,
our
legal
561
representative
and
assigns
by
these
presents
dated
the
……………………………………………….day of…………………………(year)……..
Description
Quantity
Weight
Value
Signature of the firm‟s
Proprietor.
The particulars of the items mentioned in the above sheet.
The
above
bonden,……………………………………………………………..having applied to the
Commissioner of Customs, and obtained his permission for the removal into the
town of outside the limits of the harbour docks without payment of Customs Duty for
the purpose of repairs of the articles described in the schedule above and which
articles are parts, fixtures or instruments belonging to the above named vessel. Now
the
condition
of
this
bond
is
that
if
the
said………………………………………………..or their legal representative or assigns
shall submit the said articles for inspection to the proper Officer of Customs at the
time of landing thereof and also at the time of reshipment. The said………………or
their legal representatives or assigns shall re-ship or cause to be re-shipped all or
any of the said articles within Thirty days from the date on which each of such
articles is landed and shall forthwith pay to the said Commissioner of Customs on
demand the full and proper duty leviable according to the value, and rate of duty in
force on the day following that of departure from the port of the above named vessel
or on expiry of the guarantee whichever is earlier on all or any of the articles which
are not re-shipped as aforesaid. This obligation shall be void otherwise on beach of
failure, in the performance of any part of this condition the same shall be and remain
in full force and virtue.
562
And it is agreed that any amount becoming due by us under this Bond. Inst.,
may be recovered in manner laid down under such section I of section 142 of the
Customs Acts, 1962 without prejudice to any other mode of recovery.
Signed in the presence of:
Signature
of
proprietor
Original Bond accepted by: -
Quantity
Particulars
Date
Signature of Ship‟s Officer.
Time
Date
Check and Landing Permitted
Time
Date
Section Officer
Time
Date
Passed out in full
Time
Date
Gate Officer
Time
Date
Passed in Full
Time
Date
Gate Officer
the
Firm‟s
563
Time
Date
Articles Reshipped in Full
Time
Ship‟s Officer
Date
Time
Certified that the articles have been checked and identified by me at the time
of shipping:
Section Officer
MACHINERY PASS/REPAIR PASS
Serial No.
(Articles for Repairs only shall be entered on this form).
Original (for section Officer)
Name of the Company……………………………………
Duplicate (to be handed to
Gate Officer and sent
by him to Customs House).
No. and date of the Custom House authority admitting
Triplicate (to accompany
the goods and to be
firm to concession or removing goods for repair.
Officer on reshipment.)
handed
to
Section
564
Amount
of
permanent
deposit
Rs…………………………………………...Quadruplicate (Company copy)
To,
The Asstt. Commissioner of Customs,
Court Fee
Stamp
Preventive Department.
20
Paise.
………………..Custom House.
Kindly permit the following articles to be removed for repairs from the
S.S………………………… which is in the Foreign/Coasting vessel is lying
at……………………………………………………..dock.
Description of articles showing marks & numbers,
Quantity
Weight
Value (Rs.)
If any
Tons kgs.
gms
1
2
3
4
Date
Certificate
representative for M/s.
……………………………………………….
Signature of Firm‟s
565
Signature
of
Ship‟s
Officer
……………….
…………………………………………………………………………………………………
…………………..
items checked, Landing permitted.
Time ……………………………………………………………….Signature and stamp of
Date ………………………………………………………………..Customs Dock Section
Officer
Description, number and value verified by physical examination passed out in full in
part through …..gate.
Time :
Date :
Signature of Customs Gate
Officer
Gate Officer‟s endorsement on passing in of goods through Gate.
Articles shown obverse identified, and checked by physical examination.
Passed in full/in part through ……………………………………………Gate. In
case of part passes, the items not brought in shall be clearly indicated on the reverse
by note against each item).
Time :
566
Date :
Signature of Customs Gate Officer.
CERTIFICATE OF RE-SHIPMENT
Certified that the articles detailed above have been shipped on board S. S.
……………………….
………………………………………………………………………………
in
the
foreign/coasting trade, lying at
……………………………………………………………………………………Dock.
Signature
Date :
of
Firm‟s
representative
for
M/s………………………………………..
Received on Board
Signature of ship‟s officer
Date :
S.
S.……………………………………………
Certified that the articles have been checked and identified by
me.
Reshipped in full/in part
567
Time :
Date :
Signature of Custom Dock
Section officer
Custom‟s Appraiser‟s assessment of condemned value and Duty
Condemned Value ………………..
Signature …………………………..
ANNEXURE – VI
Preventive Service Office
…………. Custom House,
Date :
With reference to the Machinery / Repair Pass No. / Guarantee
……………………………………. dated ……………………… filed by Mr./Messrs.
…………………………..
the
period
of
currency
of
which
expired
on
……………………………………………………………………….
Mr./Messrs. ……………………………………………… is/are informed that as the
articles covered by it have NOT yet been reshipped he/they should arrange with the
Preventive Department of Divisional Superintendent Appraising Department for
check of the Valuation of the articles and assessment of duty thereon within three
days from the date hereof.
568
Assistant Commissioner
of
Customs,
Preventive Department
Copy forwarded to D.S. and S/Appraising, for information.
ANNEXURE – VII
Machinery Pass Repair Pass/Register
S. No.
Date of Registry
Name of Co. removing
Name of the vessel
Serial No. of the
the
gear
or
equipment
Machinery Pass
1
2
3
4
5
Date of Expiry of
Date of receipt of Section
Whether item‟s
Date of
Officer‟s report and Original
reshipped or not
effected
reshipment of
Validity of pass
subsequent
Pass
but
before expiry of
time
of
pass
6
9
7
8
569
ANNEXURE – VII
GUARANTEE TO BE FILLED ON STAMP PAPER
In consideration of being allowed by the Commissioner of Customs
……………………..to remove more articles of Ship‟s equipment such as mattresses
and pillow for re-stuffing and linen etc., washing and repairs from vessels under our
Agency without payment of duty, and I.T.C. licence, „we undertake that goods shall
be covered on each occasion by passes in triplicate as appended here to which shall
be signed by duly authorised persons, specimens of whose signature are attached
herewith. We further undertake to produce such linen to Customs Officer at the
prescribed Gates for registration to whom the original copy of the pass shall be
delivered after all the three copies of the pass have been duly endorsed by him and
that the linen shall be taken back board for reshipment to the same vessel before
she leaves the port, after such articles are again produced to the gate duty officer for
registration covers by the duplicate and triplicate copies of the aforesaid pass before
such reshipment, the triplicate copy duly endorsed being returned to us.
Failing satisfactory registration at the time of reshipment we bind ourselves to
pay the duty on the linen and such other fines and penalties as may be leived and it
is agreed that any amount becoming due by us under the Bond Instruments may be
recovered in the manner laid down under sub-section (1) of Section 142 of the Act,
1962, without prejudice to any other mode of recovery.
The guarantee shall remain in force for one year from 1st January,
..(year)….and must then be renewed if it is desired that the concessions contained
therein should continue.
Signature
Agents.
of
570
Passing out the Ships Linen for Washing
(a)
Linen of Vessels in port may be passed out for washing on execution of a
general guarantee in the proforma by the Steamer Agents, valid for the duty and
fine/penalty involved on the linen. The guarantee to be registered in the Preventive
Department shall be renewed every year in January if the Steamer Agents desire
that the concession should be continued. Copies of specimen signature of those
empowered to sign the Gate Passes should also be furnished by the Steamer
Agents along with the guarantee.
(b)
Linen of vessels in port shall be passed out on a Pass triplicate (in the
proforma appended to guarantee) which shall be presented to the Preventive Officer
at the Gate or to the Section Officer at such ports where gates are not manned by
Preventive Officers, who shall retain the original copy. The duplicate and triplicate
copies shall accompany the linen passed out.
(c)
The linen should be reshipped on the same vessel before she leaves the port.
At such ports where Preventive Officers are posted at the Gates, the duplicate and
triplicate copies of the Pass shall be presented to the Gate Officer who shall examine
and allow the linen to pass in. In all cases, the duplicate and triplicate copies of the
pass prior to shipment shall be presented to the Section.
The Section Officer, after supervising the shipment, shall endorse the copies
accordingly, retain the duplicate copy and forward the same to the proper gate
through which the linen was originally passed out or to the concerned Section
Officer, as the case may be, where the original copy of the Pass shall be
endorsed accordingly.
In case the vessel calls at the port for brief period and it is not possible to
reship the mattresses, pillows, linen etc. after washing repairs on the same vessel,
then the Repair pass / Machinery pass procedure should be adopted.
(d)
The „Letters of Guarantee‟ executed by the Steamer Agents shall be
registered in the Preventive Office and a register for the same shall be maintained in
Annexure „A‟ appended by the clerk dealing with Machinery Passes. The dealing
clerk shall keep a watch at the end of every year, as the guarantees are to be
renewed every January, and obtain fresh „letters of guarantee‟ from those agents
who desire that the concession should be continued.
571
(e)
In order to ensure due reshipment of linen, a register in proforma at Annexure
„B‟ shall be maintained by the Gate Officers. In the case the linen is not reshipped, a
report should be made to the Assistant/Dy. Commissioner / Preventive Department
through the Divisional Superintendent for taking action in terms of the letter of
guarantee executed by the Agents.
(f)
The Divisional Superintendent shall check the Registers once a fortnight. He
should satisfy himself that all the entries therein made upto a month previous to the
date of his visit have been accounted for by reshipment of the linen or otherwise that
a report as envisaged in sub-para (5) above has been sent to the Assistant / Dy.
Commissioner / Preventive Department for taking further action.
Annexure „A‟
Register of ‗Letter of Guarantee‘ for removal of linen for washing from ships in
port.
Sr. No. Date of acceptance of
Date of expiry of
Steamer
Agent‟s
Remarks
„Letter of guarantee‟
1
letter of guarantee.
2
3
Name.
4
5
Annexure „B‟
Gate Register for ship‘s Linen
Date Application No.
Vessel‟s & Agent‟s Washing
Description
&
No. of
& Date.
passed out.
Name.
Company‟s
articles
572
Name.
1
2
3
Clause
No. of Articles reshipped
4
5
Date of Reshipment
Remarks.
6
12.23.
7
8
9
Empty Aerated Water Bottles from vessels- for re-filling
The following procedure shall be adopted for the removal of empty aerated
water bottles from vessels for re-filling.
(1) The firms concerned in passing out empty aerated water bottles shall
present a Gate Pass in duplicate of Yellow Colour in the form at Annexure “A” to the
Section Officer. The pass shall clearly indicate whether the vessel, from which the
empty bottles have to be landed, is in the foreign trade or in coasting trade. After
satisfying himself, the Section Officer shall stamp and endorse the Gate Pass. The
pass and empty bottles shall be presented at the Gate. After check, the Gate Officer
shall pass out the bottles and retain the original pass. These passes shall be kept
company wise and separately for coasting vessels and foreign vessels, and sent
weekly to the clerk in Preventive Service Office.
(2) In the case of shipment, the filled bottles shall be passed in on a pass as
in form at Annexure “B”. The Gate Officer shall endorse the pass but not retain the
same. The pass shall then be presented to the Section Officer who shall certify on
both copies shipment of the bottles onboard the vessel after check. The Section
Officer shall retain the original and file the passes in two bunches (Coasting and
Foreign separately). The passes shall be sent to the clerk in Preventive Service
Office weekly.
(3) In order to ensure that the bottles landed from vessels on the foreign
trade are accounted for by an equal number of similar bottles shipped on vessel on
the foreign trade, the clerk in the Preventive Service Office shall maintain a register
573
as in proforma at Annexure “X” which shall show company wise the bottles passed in
and out. A separate page or pages shall be kept for each company and an abstract
prepared at the end of the month. The companies shall also furnish monthly
statements showing separately items landed and shipped on (a) Foreign vessels and
(b) Coasting vessels. The account maintained in Preventive Service Office shall be
checked against these statements each
month and put up to the Assistant
Commissioner(Preventive) through Dy. Superintendent. The register shall be
forwarded to Internal Audit Department for check. Any discrepancies noticed should
be reported separately.
[ Mumbai Custom House File No. S/50-55-P.]
At the end of every six months a consolidated statement shall be prepared
showing the total number of bottles passed out and passed in company wise. This
shall be subject to audit.
ANNEXURE ―A‖
OUT
Serial No.
Original (For Customs
Gate
Officer)
Duplicate
copy)
Gate Pass for Empty Bottles
(Yellow Colour)
(Name of Company)
M/s. __________________
To
(Company
574
The Customs Officer,
………………Docks.
Kindly allow the following to be landed and passed out for re-filling from the s.
s. ________ in the Foreign/Coasting Trade.
Description
Quantity
……….dozen
Empty -------------- aerated bottles
(Firm‟s representative)
M/s. ------------------------Steward
s. s. ---------------___________________________________________________________________
_________________
Allowed.
Time ………………….
Date …………………..
Stamp
and
signature
of
Customs
Dock Section Officer.
___________________________________________________________________
_________________
Checked, Passed out.
575
Time ……………..
Signature of Customs Gate
Officer
Date ………………
……………………………Gate.
ANNEXURE ―B‖
IN
Serial
No……………
Gate Pass for Filled Bottles
(Yellow Colour)
Original, (Dock Section
Officer)
Duplicate
(Company
copy)
To
The Custom Officer,
……………………..Docks.
Kindly allow the following to be passed in for shipment on s. s. -----------------in
the foreign/coasting trade against empty bottles passed out.
Description.
Full Aerated bottles
Quantity
…………..dozen.
(Firm‟s representative)
576
Messers…………………..
___________________________________________________________________
_________________
Checked
Passed in.
Time……………..
Customs Gate Officer,
Date……………..
………………..Date
Received in full on s. s. ……………………….
Date ……………………….
Steward
s.
s.
……………….
___________________________________________________________________
_________________
Shipped in full on s. s. ……………………..
Time ……………………
Date ………………..
Customs Dock Section
Officer.
ANNEXURE ―C‖
Form of Register to be maintained in the Preventive Department.
577
M/s. ……………………………………………
Month
……………(year)…
Date
Gate
Vessel
Pass
For Foreign Vessels
For Coastal Vessels
Passed
Passed
Passed in
out
1
2
3
4A
Passed in
out
4B
5A
5B
Total
Abstract (at the end of the month for each company)
As per above entries.
As
per
Difference
statement
Empty bottles passed out
from vessels in foreign
…….…………..dz.
trade.
Filled bottles passed in
………………….dz.
company‟s
578
and
shipped
on
vessels
………………..
..dz.
…………………..dz.
in foreign trade.
Remarks regarding shortage, if any, and action taken.
Audit Stamp Initials.
Initials of Clerk and Dy. Supdt.
Signature of
Asstt. Commissioner.
Filled / empty gas cylinders- taking in/out of Docks
Certain marine supply companies of repute have been granted
permission for taking out empty cylinders from vessels berthed in Docks area
and in stream for refilling on exchange basis.
The following procedure should be adopted for the same:
(1)
The supply of gas cylinders on exchange basis under challan should be
carried out between 10.00 A.M. and 6.00 P.M. against an order received in
writing from the shipping company.
(2)
the suppliers shall present the Cylinder Pass, as per proforma given
below, in quadruplicate showing the number of cylinders intended to be
landed with their description, identifying particulars and value and the
vessel‘s name, to the concerned Section Officer. After granting lading
permission, the Section Officer shall retain the original copy.
(3)
At the gate, the Gate Officer shall endorse for ‗passing out‘ and retain
the duplicate copy.
(4)
In the case of filled bottles/cylinders, the triplicate and quadruplicate
copy will be presented at the Gate. After ‗passing in‘ endorsement, the
said copies will be presented to the concerned Section Officer, who will
permit the reshipment after satisfying himself.
(5)
The original and triplicate shall be sent by the Section Officer and
duplicate copy shall be sent by the Gate Officer to Preventive Service
Office without delay.
(6)
Regarding the shipment of gas filled in, the suppliers shall follow the
rules in force.
579
(7)
The accountability of the cylinders shall rest with the suppliers.
IN & OUT FILLED / EMPTY GAS CYLINDERS PASS
(Articles for Cylinders only shall be entered on this form)
NAME OF THE SUPPLYING COMPANY
No. and Date of Custom House Authority, permitting
the company for taking in/out, filled / empty gas cylinders :
Amount of permanent BOND :
TO,
THE ASSISTANT COMMISSIONER OF CUSTOMS,
PREVENTIVE DEPT.,
………………Custom House.
Kindly permit the following empty Gas Cylinders to be removed for
refilling from M. V. _____ which is in the foreign / coasting Trade.
The items will be returned within 30 days. The vessel is lying at ______ Dock.
Description of Cylinders Quantity
Weight in kgs.
Value
with Nos. & Makes if any
Date: _______Certificate
Rs.
Signature
of
Firm‘s
Representative
Stamp
Company
of
the
580
Signature of ship‘s officer
Items Checked, Landing permitted.
Time:__________
Date:__________
Signature
and stamp of
Custom Dock Section
Officer
Description, number and value verified by physical examination,
passed out in full / part through __________gate.
Time:__________
Signature of Customs Gate
Officer
Date:___________
(Reverse)
Gate Officer‟s endorsement on Passing in of goods through Gate
Articles shown obverse identified and checked by physical examination
Passed in Full/Part through_________________________________________
gate
(in case of in part passed, the items not brought in shall be clearly indicated
on the reverse by note against each item)
Time:________
Signature
of
Custom
Date:________
Officer,
Gate
581
Certificate of Reshipment
Certified that the articles detailed observe have been shipped on board M. V. /
M. T. _________ in the foreign / coasting trade lying at ____________ dock.
Date _____________
Signature
of
Firm‘s
representative
Date______________ Received on board,
Signature of Ship‘s Officer
Certified that the articles have been checked, identified by me. Reshipped in
full /part
Time___________
Signature of Custom
Dock
Date ___________
Section Officer,
Clearance of excisable goods without payment of Excise duty for supply as stores for
foreign going vessels / aircrafts from the Pvt. Bonded / public Bonded warehouses
In order to exercise effective control over the storage, accountal and removal
of excisable goods like Cigarettes, Aerated Water, prepared and preserved for in
Public Bonded Warehouse under Section 57 and Private Bonded Warehouse under
Section 58 of Customs Act, 1962, the following procedure is laid down.
The party shall apply for this facility in the prescribed proforma to the
Commissioner of Customs, who shall them separately notify the warehouse wherein
the excisable goods can be received without payment of duty.
The Bond
Department shall issue a certificate to the said party to the effect that they have been
permitted to receive excisable goods without payment of duty in Bond for supply as
582
stores to foreign going Vessels/Aircrafts, within a period of
six months or such
extended period. A copy of the certificate duly certified by the Customs Officer
incharge of the warehouse, shall be sent of the Central Excise Officer-in-charge of
the factory from where the goods are intended to be cleared.
Before giving
certificate to the party, Superintendent (Bond) shall inspect the warehouse and shall
submit his report to the Asst. Commissioner of Customs, Bond Department regarding
separate compartment for storing these excisable goods. Regarding the movement
of the excisable goods from factory to the Customs Warehouse following procedure
is laid down.
(i)
Each package intended for supply as stores shall be clearly marked and
stamped with the f
following words :-
“EXCISABLE GOODS FOR SHIP STORES TO BE STORED IN CUSTOMS
WAREHOUSE”
(ii)
Any manufacturer desiring to avail of this facility shall have to execute the
necessary bond in the prescribed form in terms of rule 153 of the Central
Excise Rules, 1944.
(iii)
Movement of goods from the category and their receipt at the warehouse etc.
shall be governed by the procedure prescribed under chapter VII as amended
by Chapter VII-A of the Central Excise Rules, 1944. The procedure is at
Annexure `B.‟
It shall be the prime responsibility of the Preventive Officer in-charge of
Private Bonded Warehouse and the Warehouse Keeper in the case of Public
Bonded Warehouse under Sec. 58 and 57 respectively to receive the excisable
goods in the Customs Bonded Warehouse.
All these excisable goods shall be
stored in a separate compartment with a notice board “Excisable goods for ship
stores to be stored in Customs Warehouse.” The Preventive Officer incharge shall
ensure that no other goods/package are kept in the premises.
The Preventive
Officer incharge shall maintain a separate Bond Register for such excisable goods in
the same form that of under Sec. 58. The owner of the excisable goods who has
warehoused the goods in the Customs Warehouse shall have to maintain the
account and statement of the receipt, supply and balance of the goods and shall
send the statement to the Central Excise Officer in-charge of the factory with a copy
583
to the Bond Department. The Preventive Officer in-charge/Warehouse Keeper shall
also send a monthly statement showing the total quantity of receipt and supply and
the balance remaining to the concerned Central Excise Officers at the factory with a
copy to the Bond Department. The clearance of these excisable goods specified
above shall be allowed directly from the factory of production to the Customs
Warehouse and in any case the further movement shall not be permitted. For the
purpose of this facility under Notification 180/79 CE dtd.5.5.79 the Customs Officer
in-charge of Warehouse have been conferred with all the powers of the Central
Excise Officers referred to in chapter VII intending amendment made thereto by
Chapter VII-A of Central Excise Rules, 1944.
If the excisable goods, cannot for any reason be supplied as stores within the
prescribed period of six months from the date of warehousing, the owner of such
excisable goods shall :Either ask for the extension of this prescribed period of six months, subject to
clearance by Health or other authorities concerned.
OR, return such goods to the factory of production and follow the same
procedure for the return of the goods as was followed at the time of removal of such
goods from the factory of production. The relevant procedure is at Annexure C.
12.24.
Supply of bonded Stores, i.e. liquor, Cigarettes etc. to supply
vessels and Rigs Chartered by O.N.G.C. by local Ships Chandlers –
Instructions regarding
In order to exercise control over ex-bond supplies of liquor, cigarettes and
tinned food stuffs that are drawn by Vessels/Rigs and other vessels chartered by
O.N.G.C. for operation in the Bombay High area; the following procedure shall be
adopted.
584
1.
The preventive Officer posted in the Bonded Warehouse from which supplies
are to be drawn shall maintain a register in respect of each supply vessel/rig
indicating the total number of crew and technical persons working on board
the vessel.
2.
The P. O./inhcarge shall scrutinise the supply order signed by the Master of
the vessel and counter signed by the owner of the vessel, and compare it with
the ex-bond shipping bill presented to him for issue thereof and make sure
that the quantity ordered is not in excess of the quantities worked out in
accordance with the following scale: -
(a)
Liquor: One bottle per crew per week. Liquor should not be supplied to any of
the Rigs, since O.N.G.C. does not permit the use of liquor on drilling Rigs.
Such goods as are not fit for consumption shall be destroyed with prior
permission of the officer-in-charge of Customs Warehouse.
Clearance of all Excisable goods from the Customs Warehouse for
supply as stores shall be governed by the provisions of the Customs Act,
1962.
(b)
(c)
Cigarettes: One carton (200 cigarettes) per crew per week.
Beer, Tinned Food And Other Consumable Items:
In reasonable quantity, if the Preventive Officer feels that the quantity
requested for is in excess of the normal requirements, order of A.C. (Incharge Bond)
should be obtained before the supply of the same.
3.
The quantity of items supplied should be shown in the Register mentioned at
para 1 above, supply vessel-wise/rig-wise in addition to the entries made in
the Bond Register normally maintained .
4.
If requests for additional supplies are made by the Master of any vessel, order
of the A.C. Incharge Bond should be obtained before the issue.
5.
Supdt. of Customs (P) Bond should verify the Register once in a month and
satisfy that no excess supplies are made by the Preventive Officer.
585
6.
A monthly statement showing the quantity of liquor, Cigarettes and other
items supplied to the various Supply Vessels and Rigs should be sent to the
A.C. Incharge Bond by the 5th of every month without fail.
ANNEXURE ‗B‘
Movement of goods from the factory and their receipt at the Warehouse etc.
shall be governed by the procedure as laid down below.
1.
On production of Bond in the prescribed form in terms of rule 153 Central
Excise Rules, to the Officer in-charge of Warehouse of removal or of the
Warehouse of destination, accordingly as the Bond is executed by the
consignor of the consignee.
2.
Such Bond shall not be discharged until such goods are produced to the
Officer at the Warehouse of destination and are duly warehoused or otherwise
accounted for to the satisfaction of the officer having jurisdiction over the
executor of the Bond nor until the duty due upon the deficiency in such goods
not so accounted for has been paid
3.
For purpose of such a discharge, if the Bond has been furnished by the
consignor, as essential condition shall be the prior receipt by the Officer in
charge of the warehouse of removal, of the duplicate application from the
Officer-in-charge of the warehouse destination with re-warehousing certificate
recorded thereon, as hereinafter provided under sub-rule (3) of 156-A)
4.
154 Remover may enter into a general bond – The Commissioner may permit
any person entitled under these rules to remove warehoused good from
warehouse to another to enter into a general bond with such surety or
sufficient security, in such amount, and under such condition, as the
Commissioner approves for the removal from time to time, of any goods from
one warehouse to another, and for the due arrival and re – warehousing
thereof at the warehouse of destination within such time as the proper officer
directs.
(Provided that, in the event of death, insolvency of insufficiency of the
surety, or where the amount of the bond is inadequate, demand a fresh bond
586
and may if the security furnished for a bond is not adequate demand
additional security.)
5.
155. Bond under rule 140 and rule 164 to continue in force not –withstanding
removal. Every bond executed under rule 140 and 164 in respect of such
goods shall, unless the Commissioner in any case deems a fresh bond to be
necessary, continue in force notwithstanding the subsequent removal of such
goods to another warehouse.)
6.
156. Certificate regarding consignee to be produced along with his application
for the removal of the goods, the consignor shall produce before the proper
officer a Certificate in the proper form stating the particulars of the Central
Excise Licenses held by the consignee and the bonds, if any, executed by
him.
ANNEXURE ‗C‘
While returning such goods the Bonder/Owner shall file with the proper Officer
for approval the list) in triplicate) of the goods showing the following details.
1.
Date of manufacture.
2.
Date of warehousing.
3.
Full description of the goods.
The owner/bonder, should also state the reason for non-disposal of the goods as
“Stores” within the prescribed time-limit.
After scrutiny of the above forms, the proper officer may approve the request for
return of the goods to the factory. The P.O. in charge shall endorse all the copies
of the form after making entry in warehouse Register, P.O. shall retain the
original copies and handover the duplicate copies for removal of the goods under
preventive escort of the factory.
@@@@@@@@@@@@@
587
CHAPTER – THIRTEEN
13.
COASTAL TRADE
13.1. PRELIMINARY
India is a vast sub-continent, which is having an extremely long coast line of
over 3,500 Kms. Owing to this, transportation by waterborne vessels whether
riverline or lying in the sea, constitutes the cheapest mode of transportation of bulk
cargo, as compared with any other form of transportation.
Bulk items like coal, salt, building materials etc. are transported from the
areas wherein they are mined/manufactured, to the consuming centres on the coast,
by coastal vessels both sailing as well as mechanised. Another major important bulk
item, which constitutes a sizeable proportion of coastal traffic, is transportation of
petroleum products from the refineries located on the coast, to the storage
tanks/depots as well as sales and distribution outlets, located at various points on
the coast. Thus, it is but obvious that movement of coastal goods by sea is an
extremely important day-to-day activity.
It is clear that coastal traffic of normal and bulk cargo is important to the
country‟s economy as it reduces the pressures on other modes of bulk
transportation, which are not only expensive but already over-stretched. As
the
coastline of India is vast, there are large number of coastal ports, bearing importance
and quantum of coastal traffic, depending on their locations as well as size.
Accordingly, controls of each of such minor ports and the traffic entering as
well as emanating from the them, vary from port to port. Procedures for transactions
of work from the Customs point of view, have been laid down and defined. The
movement of coastal goods and vessels carrying coastal goods, which is mostly
through Bunders/Minor ports, is monitored by the Coastal Trade Establishment
(CTE) section of the Custom House.
588
13.2. DEFINITION OF COASTAL TRADE:
The expression “Coastal Trade of India” should be taken to mean the
conveyance of goods (other than imported goods) or passengers from one port of
India to another port thereof, but a vessel engaged in a voyage starting from or
ending at port outside India or which in the course of a voyage between two ports in
India touches a port outside India for the purpose of embarking or disembarking
passengers or goods should not be regarded as engaged in the coastal trade in
India.
Provisions relating to Coastal Vessel and Coastal Traffic have been made in
Chapter XII of the Customs Act, 1962.
Section 91 of the Customs Act, 1962, stipulates that provisions of Chapter XII
of the Act, relating to coastal goods and vessels carrying coastal goods, shall not
apply to Baggage and Stores.
13.3. Entry of Coastal goodsSection 92 of the Customs Act, 1962, prescribes that the consignor of any
coastal goods shall make an entry thereof by presenting to proper officer a bill of
coastal goods in the prescribed format duly endorsed of its truthfulness.
The prescribed Bill of Coastal goods requires, inter alia, a description of the
goods and remarks whether they are inland goods or foreign merchandise. The
declaration has to be elaborate, the consignor has to declare value, “sort”,
specification, quantity, composition and description to the best of his knowledge, and
belief, and further certify that the goods are in accordance with the contract entered
into with the buyer. The proforma is similar to that of import and export goods, in
respect that consignor has to make a declaration as to the truth of the contents.
589
13.4. Bill of Coastal Goods (Form) Regulations, 1976
In exercise of the powers conferred by section 157, read with section 92, of
the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs
hereby makes the following regulations, namely: 1. Short title and commencement. – (1) These regulations may be called
the Bill of Coastal Goods (Form) Regulations, 1976.
(2) They shall come into force on 1.1.1978.
2. Bill of Coastal Goods. – The Bill of Coastal goods to be presented by the
consignor of any coastal goods under sub-section (1) of section 92 of the Customs
Act, 1962 shall be in the Form appended to these regulations.
13.5. Bill of Coastal Goods
(Original/Duplicate )
Consignor‟s Name …………………
Date
of
Presentation………….
Address…………………………….
Name of vessel:
Port of Loading
Master or Agent
Colour
Port at which
goods to be discharged
Rotation No.
Year:
Packages
(Details of goods to be given for each class of description).
Number and Marks and Quantity
Description FOB
Remarks whether inland
goods or foreign
Description
numbers
and weight of goods
value
merchandise.
590
(in words and
figures)
Total :
Total No. of Packages (in words)
I/We declare that:
(For Customs Use only)
(a) the value, sort, specification,
quality, composition and
description of goods mentioned in this Bill are stated to the best of my/our
knowledge and belief and I/We certify
that they are in accordance with the terms
of
contract
entered
into
with
the
buyer/consignee in pursuance of which the
goods are being loaded and transported;
and,
Custom House
Passed for Loading (b) the particulars given above are
true.
Seal
Proper Officer
Signature of the Consignor/Agent if acting
for consignor.
Place and date
___________________________________________________________________
_________________
………………….Packages landed
………………….Packages short landed
of Customs Control.
………………Packages passed out
591
Proper officer
Proper Officer.
[ Notfn. No. 424, dated 23.10.1976,as amended by Notfn. No. 224-Cus.,
dated 22.10.1977. ]
13.6. Loading / Unloading of Coastal goods
Section 93 of the Customs Act, 1962, stipulates that loading of any Coastal
goods on the vessel shall not be permitted by the Master of the vessel unless a bill
relating to such goods has been passed by the proper officer and has been delivered
to the master by the consignor.
Section 96 of the Customs Act,1962, prohibits loading/unloading of coastal
goods from any vessel at any port other than a Customs Port or a coastal Port
appointed under Section 7 of the Act for the purpose
Similarly, Section 98 (1) of the Act prescribes that Sections 33, 34 and 36
shall also apply to the Coastal goods as they apply to the imported goods or export
goods. Section 98 (2) of Act stipulates that Section 37 & 38 shall also apply to
Coastal vessels as they apply to vessels carrying imported goods or export goods.
Section 98 (3) empowers Central Government may make rules regarding application
of all or any of the provisions of Chapter VI & of Section 45 of the Act, to coastal
goods or vessels carrying coastal goods.
Section 99 of the Customs Act, 1962, empowers the Central Government to
make rules
for preventing the export of any coastal goods which are dutiable or
prohibited under the Act or under any other law in force. Further the Government can
also make rules for preventing the substitution of imported or export goods by goods
in the case of a vessel carrying coastal goods as well as imported or export goods.
13.7. Rules Relating To Coastal Trade
592
Rules have been framed under the provisions of Sec. 98 of the Customs Act,
1962, for regulating the coastal trade by coastal crafts, that is, vessel with sails or
motor. The same are reproduced hereunder:
With the approval of Government, the following Rules have been framed by
the Chief Customs Authority under Sections 158-162 of the Sea Customs Act, 1878,
( Note : Sections 158 to 162 of the Sea Customs Act,1878, correspond to Sections
94 to 98 of the Customs Act, 1962 ) for regulating the coasting trade carried on in
native craft I.e. vessels other than squire rigged or propelled by steam :
i)
The Export General Manifest shall be in the same form as that prescribed for
other vessels under Sec. 63 and 158 of the Sea Customs Act, 1878. It shall contain,
besides the required particulars, the following information.
a)
In the case of a vessel to which cargo from another Customs port has been
transhipped from another native craft, a note should be made opposite each item of
transhipment cargo to the following effect:
“Originally manifested at the port of ………………for transhipment to the port
of ………………
or
“Subsequently
manifested
at
……………………
for
transhipment
to
………………….
according as the goods were originally manifested at the port of export for
transhipment at the port in question or their destination was changed on arrival there.
b)
It shall include all goods brought from another port and not landed or
transhipped and also all arms and ammunition, on board.
ii)
If the vessel has arrived originally from another port, the manifest prepared as
above, shall be presented in duplicate along with the document on which the cargo
has been discharged endorsed by the Officer who supervised the landing to the
effect that all the cargo manifested for the purpose has been discharged and inward
clearance obtained.
593
iii)
Both the copies will then be presented to the proper officer together with the
original Transhipment Permits for goods for which Tranship Permits have been
granted all Shipping Bills with endorsements showing the quantity of goods actually
shipped. The Master shall also produce the following documents: -
iv)
a)
the clearance certificate from the Port Office
b)
vessel‟s register
c)
port and light dues, if any
d)
certificate that the vessel is furnished with side lights; and
e)
Health Certificate in the case of vessels arriving from infected places.
If any of the goods for which Shipping Bills or transhipment permits have been
granted are not shipped, the master shall, at the same time, put in a certificate in the
form of an endorsement on the reverse of the Shipping Bills or the duplicate
transhipment permits to the effect that the goods have not been shipped or
transhipped as the case may be.
v)
One copy of the manifest will be returned and signed by the Proper Officer
together with the Shipping Bills and transhipment permits and it shall be the port
clearance for the vessel.
vi)
In the case of native craft clearing in ballast for a Customs Port, port
clearance will be granted in the form attached. The form shall be filled in counterfoil
by the master or agent, and, after inward clearance has been obtained in the manner
above described, the Proper Officer who will sign the original and return it to the
master as his clearance.
594
vii)
In the case of native craft, entering and leaving a port in ballast it shall be
entered and cleared like other vessels and shall take a port clearance in the same
form as in the case of a vessel entering with cargo and clearing in ballast.
viii)
Within 24 hours of the arrival of any native craft at any Customs port the
master must obtain a certificate of entry from the Port Office and present it at the
Custom House along with the following documents:
a)
the port clearance from the last port of call
b)
extract from manifest and Shipping Bills for all cargo to be
discharged at the port
c)
a list of the vessel‟s stores
d)
port and light dues receipts, if any;
e)
the original manifest of which the above is only an extract; and
f)
an application to enter the vessel towards if the dutiable goods on
board.
ix) After the vessel has been entered, the Export General Manifest will be signed
by the Proper Officer who entered the vessel and returned to the master and will
be his authority to break bulk, except in the case of free goods intended for
transhipment which shall not be discharged until a transhipment permit has been
prepared and completed by the owner and presented, along with the document
on which the import cargo is to be discharged, to the Officer deputed to supervise
the Transhipment.
x)
If free goods originally manifested for importation are subsequently required to
be transhipped for another port, the Export General Manifest shall be presented to
the Proper Officer for amendment before a permit is granted.
[ Board of Revenue (Sept. Rev.) Notfn. Dtd.9.10.1908 and Notfn.
No. 93/50 dtd.9.9.1950 ]
13.8.
Export General Manifest
595
Manifest
of
all
goods
exported
per
…………………………………………………………………… of tons, ……………..
Commander, to ………………… under …………………colour.
Marks
Number
Descri
By
To
Index
Re
and
and kind
ption
who
whom
number
mar
numbe
of
of
m
consi
of
ks
r
package
goods
consi
dered
Shipping
of
packag
s
gned
Bills
es
1
2
3
Cleared outward the ………… of ……….
4
5
6
7
I do hereby declare that the
contents of the
above
Manifest are truly stated, Madras,
this
Assistant Commissioner of Customs
day of ………….
Commander
Note: The Manifest should also contain full particulars of all arms and
ammunition kept on board whether they form part of the ordinary equipment of
the vessel or are the personal property of the master, the officers or the crew
working on board.
596
Form of Empty Port Clearance for Native Craft
No. ……….
Cleared inwards general manifest No.
Name of Vessel
Tindal‟s Name
Painted No.
Burthen in Tons
Colours
To what place
Cargo
I hereby declare that the foregoing information regarding cargo and
destinations is truly stated.
Port,
Dated …………. ….
Tindal
Port
Port Clearance granted.
Dated …………..…….
Customs
Commissioner.
Form of Export General Manifest for Native / Coasting Craft
No. of
Export General Manifest
(Native Coasting Craft)
Vessel‟s Register No. ………………………………………………………………
Manifest
of
Goods
exported
per
……………………………………….of……………………………………………….ton
s,
Tindal
………………………………………………………………………..under……………
……………………………… colours ………………………..to …………………
597
Port Dues
No.
Descri
Wei
Real
By
Ship
Re
Certificate
and
ption
ght
valu
wh
ping
mar
No.
kind
of
or
e of
om
Bill
ks
Cleared
of
goods
Qu
goo
shi
No.
pac
anti
ds
ppe
per
kag
ty
General
es
Inward
as
d
Manifest
Register
No.
1
2
3
4
5
6
7
8
I do hereby declare that contents of this Port-clearance granted at the
Manifest to be truly stated.
…………..Custom House for
on the ……(date)…
Assistant Commissioner of Customs
Marks of Tindal
Note – Port-clearance granted at ………………….on …………………… subject
to the counter-signature of the Preventive Officer at the Bunder before departure.
Note : if any goods are landed from a coasting vessel which has touched at a
foreign port or which has on board goods brought from a foreign port in
contravention of Section 82 of the Sea Customs Act, 1878,
598
(this corresponds to Section 32 of the Customs Act,1962 ), i.e. without being
entered in the original or an amended or supplementary manifest, the
Commissioner may impose a penalty under Section 167(33) of the Sea Customs
Act, 1878 (Sections 167 (1) to ( 81 ) of the Sea Customs Act correspond to
Sections 111 to 119 of the Customs Act, 1962) and a note of the fact of such
landing shall be endorsed on such manifest by such Customs Officer as the
Commissioner may from time to time direct.
[ G.O. No. 3629 –Rev. dtd. 5.12.1911 ]
13.9.
Coastal Vessels – Masters Responsibilities
The Masters of coastal vessels are, directly responsible for complying with the
statutory requirements imposed on them by the provisions of the Customs Act,
though there is no objection to their employing licenced Custom House agents for
the preparation and delivery in the Custom House of any documents or other
papersprescribed in connection with the entry or clearance of any vessel. Such
documents of other papers must however be signed or otherwise duly attested by
Master who is designated in some ports as a “Tindal”.
Section 95 of the Customs Act, 1962, stipulates that the master of every
vessel carrying coastal goods shall be supplied by the Customs authorities with a
book called " advice book “
and master of such vessel shall carry the advice
book on board the vessel. The proper officer at each port of call shall make such
entries in the advice book as he deems fit, relating to the goods loaded on the
vessel on that port.
13.10.
Imports by Coastal Vessels
The provisions regarding clearance of coastal goods at destination have been
outlined in Section 94 of the Customs Act, 1962.
As per Section 94 (1) of the Act, the master of a vessel carrying any coastal
goods shall carry on board the vessel all the Bills relating to such goods and shall
immediately on arrival at any customs or coastal port , deliver to the proper officer
all bills relating to the goods to be unloaded at that port.
599
Further, Section 94 (2) of the Act stipulates that where any coastal goods are
unloaded at any port, the proper officer shall permit clearance thereof if he is
satisfied that they are entered in a bill of coastal goods delivered to him.
The following working procedure is followed in respect of coastal vessels in
coastal tradei) Coastal vessels arriving from Customs Ports will on arrival, anchor at the
discharging line of the Free Anchorage or at any of the Bunders or
wharves/jetties at which they are permitted by the local Custom House to land
any part/full of their cargo. Within 24 hours of arrival of the coastal vessel, the
Master/Tindal will report to the Preventive Officer in-charge of CTE. The
Master/Tindal on reporting will deliver the following documents in connection with
the entry inward of his vessel;
a) the copy of Export General Manifest tendered by him at the previous port;
b) duplicate copies of all Shipping Bills relating to the items indicated in the
Manifest;
c) the vessel‟s register;
d) port dues receipt (if the vessel is of 10 tons and above)
e) light dues receipt, if any;
f) list of vessel‟s stores and such other documents as required.
ii) In case of coastal vessel arriving in ballast, the Tindal will present in lieu of
Export Manifest and relative Shipping Bills, an I.G.M. in the prescribed form
together with empty port clearance issued at the port of the departure.
The officer-in-charge of wharf/ jetty/bunder etc., or CTE where the
Master/Tindal reports, shall as soon as the E.G.M. from previous port and the
duplicate copies of Shipping Bills and the other documents stated above, are
received, check up whether the same are in order in all respect and shall enter
the requisite particulars of the vessel in the Inward Entry Register and give the
entry a serial number such as C1, C2, C3 and soon of annual series, note the
serial nos. and date of entry on the Export Manifest from previous port (which
shall become the Import Manifest) and duplicate copies of Shipping Bills or empty
Port Clearance and return the documents to the Master/Tindal with suitable
600
direction for payment of the port dues/wharfage charges involved. As soon as
Tindal submits the same E.G.M. (i.e., now I.G.M.), after the payment of port
dues/wharfage charges, the officer concerned will note the payment for port dues
receipt No. and date in the Inward Entry Register. Thereafter, he shall permit the
Master/Tindal to land the goods for granting delivery to the various consignees.
While being passed out from the Bunder/wharf/jetty, the Preventive Officer should
occasionally scrutinize a few items to see if they agree with the manifest. This
scrutiny is not for the purpose of accounting for all the cargo, but merely a check
against the smuggling of other good. After landing of all the goods is completed,
the officer-in-charge of the wharf/Bunder/jetty shall endorse the landing certificate
issued to the Master/Tindal by the Customs Officer at the previous port of
shipment for resubmission to him. He shall also make necessary landing
endorsement on both, EGM from previous port and the duplicate copies of
Shipping Bills. If any short landing to the previous port of shipment. He should
also issue a notice to the Master/Tindal calling upon him to explain as to how
short landing took place. In respect of such case of short landing, the officer
concerned shall after obtaining the explanation of the Master/Tindal, submit a
report to the Assistant/Dy. Commissioner of Customs (Preventive). After all
formalities in respect of the cargo brought by the sailing vessel are over and after
the statistical returns are prepared the officer concerned shall ensure the proper
filing of the EGM and all the connected duplicate copies of the Shipping Bills and
other documents.
13.11.
REGISTER OF ONWARD/INWARD ENTRY OF VESSELS
________________________________________________________________
_______________
Clearance Rotation
Vessel
Date and hour of entry
If prior to
Nationality
No.
Date
Hour
arrival
________________________________________________________________
_______________
601
1
2
3
4
5
6
________________________________________________________________
_______________
________________________________________________________________
_______________
Tonnage Agents
Port or Ports
Commander General
Remarks
Description Cargo
7
8
9
10
11
________________________________________________________________
_______________
13.11.
i)
EXPORTS BY COASTAL VESSELS:
Any Master/Tindal of sailing vessel intending to carry goods to other Indian
ports, shall obtain entry outwards on presenting to the clerk-in-charge in C.T.E. a
landing certificate issued at the time of entry inwards of the vessel. After noting down
the requisite particulars of the vessel in the Outward Entry Register and assigning a
rotation No. to it, the clerk shall grant outward entry.
13.12.
REGISTER OF VESSELS CLEARED OUTWARDS
Date and No. of
No. of Vessel‟s
Export
Register
General
Burthen
and
Register.
1
Description of Vessel
Name
Register
2
3
4
as
per
602
Tindal‟s
Colou
Destina
No. of Export Entries
Date of Port
Name
rs
tion
granted
Clearance
5
ii)
6
7
for
the
shipment of goods
granted.
8
9
Any person desirous of effecting shipment of goods to other coastal ports by
the vessel for which an outward entry has been given and duly notified, will be
required to file a Shipping Bill in duplicate. Shipping Bills so filed shall be carefully
scrutinized by the dealing clerk. If everything is found to be in order, he shall pass
the Shipping Bills. Shipping Bills in respect of restricted goods shall be signed by the
officer-in-charge C.T.E. The original copies of the Shipping Bills shall thereafter be
returned to the party for effecting the shipment.
iii)
After all the goods allowed for shipments are loaded on to the vessel, the
Tindal/Master of the vessel shall apply for port clearance by presenting Export
General Manifest in duplicate along with the original Shipping Bills and landing
intimation. The clerk concerned shall carefully scrutinise both the copies of the EGM
and other documents and after making sure both the copies correctly reflect the
particulars of goods indicated in the EGM, shall grant port clearance after entering
the requisite particulars
number.
in the Port Clearance Register and assigning a serial
The original copy of the Export General Manifest together with the
duplicate copies of the relative Shipping Bills and the landing intimation should
thereafter be returned to the Master/Tindal of the vessel for submission at the next
port of call. The return of the original E.G.M., duly signed, to the Tindal shall itself
constitute the port clearance. Thereafter, the Tindal will present these documents to
the Bunder Officer or the department concerned, as the case may be, for
countersignature on the reverse of the Export General manifest.
iv)
If no cargo is taken by the vessel, an empty port clearance shall be issued
against an intimation to that effect by the Master/Tindal and after verifying the
necessary documents required under the rules.
v)
The original Shipping Bills which are retained will immediately thereafter, be
utilized for preparing statistical returns. On receipt of landing intimation from the port
603
of destination, the duplicate EGM should be closed and properly filed together with
all the relative documents.
vi)
Prior to granting the port clearance, it shall be the responsibility of the dealing
clerk to make sure that the Indian Coastal light dues and other dues if any have been
paid.
13.13.
Steamers arriving at and departing from enclosed docks of the
Ports
i)
In so far as imports of coastal goods by steamers are concerned, the same
procedure as stated above should mutatis-mutandis be followed. The Master of the
vessel or the local steamer agents, will file within 24 hours of the arrival of the
vessel, a copy of the EGM presented at the previous port of shipment together with
duplicate copies of all relative Shipping Bills. The out of customs charges shall be
indicated on the separate delivery order issued by the steamer agents to each
consignee.
ii)
In cases where the above procedure is not followed, the usual procedure in
force shall be followed, i.e. the steamer agents shall, within 24 hours of the arrival of
the vessel, file an Import General Manifest in duplicate in respect of all the goods
brought by the vessel, in coastal Trade Establishment or in concerned departments
as directed by the local Custom Houses. In such cases it will have to be ensured
that copies of the EGM with relative Shipping Bills filed at previous ports have been
received and on receipt of which the earlier Import General Manifest filed by the
Agents/Master shall be verified and compared with the same to ascertain (i) that no
discrepancy or short landing are involved, (ii) that the coastal goods cleared on bills
of entry are coastal goods only and (iii) that no transhipment cargo has escaped
payment of duty.
iii)
On receipt of the IGM the clerk dealing with coastal (imports) shall carefully
scrutinize the same and enter their requisite particulars in the entry Inward Register
and give the entry a serial number of an annual series, note the register serial no.
and date of entry and the No. of receipt for the payment of dues, in the IGM and
grant entry inwards to the vessel after making sure that all dues have been paid.
After entry inwards is given, a serial No. assigned to the IGM shall be duly notified.
Thereafter, bills of entry in duplicate filed in Coastal Trade Establishment/Import
604
Department by or on behalf of the respective consignees shall be received,
numbered stamped and scrutinized to see that they agree with all the material
particulars in the Import General manifest. If everything is found in order, the same
shall after nothing (in the manifest) be put up to the officer-in-charge Coastal Trade
Establishment or clerk concerned in the Import Department for giving which will be
returned to the consignees for effecting clearance of the goods through Port
Authorities after payment of port dues. The original copies of the duplicate bills of
entry and the outturn statement from the Port Trust, the IGM should be closed and
filed together with all the relevant documents.
iv)
Country craft/sailing vessels which arrive with coastal goods from Customs
ports and take berth in the enclosed docks in the port, where the steamers engaged
both in the foreign trade and coastal trade are berthed, shall observe the same
procedure as indicated in sub-para (iii) above the clearance of coastal goods in the
town.
13.14.
Export by Steamers
i) Any Master or agents of a steamer intending to carry goods to other coastal
ports will be required to make an application in the prescribed form in Coastal
Trade Establishment or Export Department as directed by Local Custom House
for obtaining entry outwards. After obtaining the necessary orders of the proper
officer (as directed by the Local Custom House) on the application so received to
each such outwards entry granted after noting down the requisite particulars No.
of each outward entry should be notified.
ii) Shipping Bills filed in respect of goods proposed to be shipped in the steamer
for which outward entry has been granted shall be numbered, stamped and
carefully scrutinized by the dealing Clerk/Superintendent/Export Department. If
everything is found to be in order, he shall pass the Shipping Bills in respect of
restricted goods and ship‟s stores should be signed by the officer-in-charge
Coastal Trade Establishment or such other officer as directed by the local
Custom House. The duplicate copies of Shipping Bills should thereafter be
returned to the party for effecting the shipment. After payment of port dues, if any,
the Shipping Bills then be straightway presented to the Section Officer for
supervising the shipment.
605
iii) After all the goods are loaded on to the steamer, the Master or the Agents, will
apply for port clearance in the prescribed form together with two sets of Export
General Manifest, and all the duplicate copies of Shipping Bills. The clerk dealing
with coastal goods (Exports) shall carefully, scrutinize the application for port
clearance and the two copies of Export General Manifest and after making sure
that both the copies of the Shipping Bills correctly reflect the particularity of goods
indicated in the Export General Manifest, grant port clearance in the prescribed
form,
after
obtaining
signature
of
the
officer-in-charge
Coastal
Trade
Establishment or such other officers as directed by particulars and assigning a
serial no. one copy of Export General Manifest together with the submission.
iv) The original Shipping Bills retained will be passed on to the clerk preparing
statistical returns. The other copy of the EGM and the original copies of the
relative Shipping Bills should thereafter be filed and recorded after formal closing
of the Export General Manifest.
v) In cases when the Master or the agents is/are not able to produce the Export
General Manifest and relative copies of duplicate Shipping Bills at the time of Port
clearance, the steamer agents will after the goods are loaded in vessel apply for
port clearance in the prescribed form together with requisite documents. After
making sure that all the documents are in order, the proper officer will grant port
clearance in the prescribed form, and after entering the requisite particulars in the
Port Clearance Register and assigning a serial number.
vi) The steamer agents shall within seven days of the due departure of the
vessel, file an Export General Manifest in duplicate, along with the duplicate
Shipping Bill. On receipt of the Export General Manifest and duplicate copies of
Shipping Bills, the latter should be passed on to the clerk preparing statistical
returns. One copy of export general manifest, should be forwarded to the port of
destination and the other together with original copies of Shipping Bills filed and
recorded after formally closing the Export General Manifest.
13.15.
Transhipments
If the IGM of the previous port of shipment or IGM of this port, as the case
may be, include any items involving transhipment, filing of a transhipment permit in
606
duplicate in the prescribed form will be necessary. The transhipment permit so
presented should be checked, to make sure that the particulars in the manifest are
the same and should thereafter be put up to the Superintendent-in-charge of the
Division or other officer or department concerned for allowing transhipment. After
these orders are passed, the original copy of the transhipment permit should be
returned to the party for effecting the transhipment and the duplicate filed along with
the EGM of the previous port or the IGM of this port, as the case may be. In cases
where the on-carrying vessel has been granted outward entry by the Export
Department, both the copies of the Transhipment permit should be returned to the
steamer agents for arranging the transhipment.
In such cases after the
transhipment permit has been processed by any department other than the coastal
trade establishment or concerned department, the duplicate transhipment permit
should be returned to the officer-in-charge Coastal Trade Establishment or the clerk
of the department concerned, dealing with the coastal trade, as the case may be,
after signing the “Let Tranship Order” for filing the same with the relative Import
General Manifest.
13.16.
PORT CLEARANCE OF COASTAL VESSELS
Section 97 (1) of the Customs Act, 1962, stipulates that the master of a vessel
which has brought or loaded any coastal goods at a customs or coastal port shall
not cause or permit the vessel to depart from such port until a written order to that
effect has been given by the proper officer.
Section 97 (2) of the Act outlines the conditions for grant of such order which
area) the master should have answered the questions put to him under Section 38 of
the Act,
b) all the charges and penalties due in respect of such vessel or from the master
have either been paid or the payment has been secured by guarantee to the
proper officer,
c) the master should have satisfied the proper officer that no penalty is leviable on
him under Section 116 of the Act, or the payment of any penalty has been
secured by a guarantee to the proper officer,
607
d) all the provisions, rules and regulations relating to the coastal goods and vessels
carrying coastal goods have complied with.
As per Notfn. No. 93 / 50 dated 9.9.1950, the Board has prescribed that the
Port Clearance granted to the Coasting vessels other than native craft shall
be in the same form as that prescribed under Section 65 of the Sea Customs
Act, 1878 ( Note: Sections 62 to 66 of the Sea Customs Act, 1878,
correspond to Sections 41 and 42 of the Customs Act, 1962 ).
Form of Port Clearance
No. …………….
Port
clearance
……………………………………………………………………………………………fo
r
the
………………………………..burthen
……………………….
Tons………………………………….Captain
…………………… under …………………..Colours bonded for ……………………..
This is to certify, to whom it may concerns, that the agents/owners of the
above-mentioned ………………………have rendered an account of her import
and export cargoes, and have complied with all the regulations of this port.
Crew ……………………….
Passengers…………………
Custom
House,
…………………….
Commissioner of Customs has ………………………… cargo/no cargo.
13.17.
Irregularity in tonnage declared – check of
Whenever Customs Officer dealing with sailing vessel has any good reason to
suspect any material discrepancy between the tonnage stated in the relative
certificate of register and the actual tonnage of a vessel, they should notify in
writing to the nearest Port Trust/Port Commissioner office who will take
necessary action for detention of the vessel and cause it to be re-measured if
necessary.
608
13.18.
Issue of passes to Sailing Vessels
a) Sailing vessels, which sail from one coastal port to another, will be issued with
passes in prescribed form valid for a period of 12 months .These passes should
ordinarily be issued immediately after the monsoon is over. The passes so issued
should bear the condition that the Tindal of the vessel shall get it checked up by
the Officer-in-charge or any other officer entrusted with this work as the case may
be, once in every calendar month. It should be made clear to the Tindal that the
pass will become automatically invalid if the same is not got checked up in this
manner.
b) Before any goods are discharged, notice of intimation to discharge shall be
given to the Customs Officer on duty at the wharf/jetty/bunder where they are to
be discharged and/or the department/officer concerned.
c) If the vessel arrives in ballast or with passengers only the pass must be
produced to the Customs Officer or department concerned for endorsement
before the vessel leaves port.
d) Special care should be taken by all officers dealing with such vessels to see
that no vessel is allowed to discharge cargo or to leave port with expired passes
and to require such passes to be renewed before permitting any operation.
e) The Master of a vessel plying under such pass is required on arrival in port to
deliver to the concerned officer on duty where the cargo is to be discharged or to
the department concerned, the pass held by him together with a Kutcha Import
Manifest for the cargo. After verifying that the Port Trust/Port Commissioners fees
have been paid he will permit to discharge the cargo and when discharge has
been completed, this officer will sign an endorsement to the following effect on
the passes and on the manifest, if any.
“Landed
at
……………………………………………..Bunder/Wharf/Jetty
………………………….
from
Port”.
f) The pass will then be returned to the Master as his authority to leave the port
in ballast. When any provisions and stores which are liable to export duty are
taken on board a vessel plying under such pass, the concerned officer will enter
the quantity so shipped on the pass. The import manifest if any delivered will be
609
forwarded on the following day to the Statistical Department for registration of
Trade Statistics.
g)
When the Master of a vessel plying under such a pass wishes to load cargo
for Customs port, he shall enter his vessel outward and obtain port clearance in
accordance with the ordinary procedure.
Proforma of pass
No.
To,
Signature
The Asstt. Collector of Customs
Sir,
Please
permit
my
vessel
………………………………………………………………………………….
Tindal…………………………………………………… P No. ……………..…of Tons
employed
in
bringing
…………………………………….from
the
port
of
………………………………..to discharge the said goods at the port of
…………………………………………………………………for 12 months before
entry inwards.
Port……………
Toney No.
Signature or the Mark of Left Hand Thumb
Impression of
Tindal.
610
Permitted on the conditions prescribed in the Central Board of Revenue Notfn
No. 57 of 9th July, 1927
L.C. No.
D. B. C. No. PH
P. D. No.
………………….. Assistant Commissioner of Customs
Note:
1. A special pass shall be granted to sailing vessels/ country craft only when they
are employed in bringing form Customs Port Chunam, sand stones for building
purposes green grass, poultry, fresh fruits, vegetables or other market produce.
2. To such vessel a special pass may be granted to be in force for 12 months. But
before any goods are discharged notice of intention to discharge them shall be
given to the Customs Officer on duty at the wharf where they are to be
discharged.
3. The Tindal of the vessel shall get such pass checked up by the officer-in-charge,
once in every Calender month.
4. The Pass will become automatically invalid if the same is not get checked up in
the manner at (3).
5. The Master of the vessel plying under such pass is required on arrival in port to
deliver to the officer on duty where the cargo is to be discharged the pass held by
him together with a Kutcha Import Manifest for cargo consisting of building
material and other market products.
13.19.
Cargo jettisoned during the voyage
When the Master of a Tindal of a coastal vessel reports on arrival, that he has
jettisoned some cargo during report in the form of a statement and shall obtain
the Tindal‟s signature or the left hand thumb impression if he is an illiterate. The
officer concerned shall then closely question the Tindal concerning the facts and
also whether he has touched at any port having jettisoned the cargo.
611
The vessel shall then be inspected with a view to ascertain whether she bears
any indications to support the Tindal‟s statement. The result of the officer‟s
examination should then be noted at the foot of the statement which should be
sent on to the Divisional Superintendent for acceptance of such action as he
considers fit to take.
After the Divisional Superintendent has dealt with the report, entry inward
shall be completed and report sent to Coastal Trade Establishment or concerned
department in the Custom House.
13.20.
Landing and shipment of perishable produce like fresh fish, fruits
and vegetables
a) Fresh fish caught within port limits may be landed and passed from any
authorised bunder/place of landing at any time without documents.
b) Sailing vessels plying under monthly/yearly passes may land their daily
market produce of fresh fruits and vegetable at any time where the Port
Trust/Port Commissioners collect their fees at all hours of the day or night.
c) Consignments of fresh or frozen fish, fruits and vegetables by steamers from
Customs Ports may be passed by the Preventive Officer on duty/department
concerned at any time including Sundays and holidays without the Asst.
Commissioner‟s order on presentation of an incomplete bill of entry in duplicate
signed by the owner containing full particulars of goods. No supervision fee will
be charged for such operations which will be carried out by the preventive staff
posted at the Docks gates as per local orders.
Note: Potatoes, onions are not considered as perishable for the purpose of these
orders.
13.21.
Store list for coasting vessels
Vessels in the Coasting Trade arriving via a port/ports outside India should
furnish a separate list of stores taken (with details of brand/type and quantity for
each kind of article) and quantity of each type of stores remaining unconsumed
on arrival.
Vessels engaged in regular sailing trade other than plying under
612
general pass, need not file an Import Stores List in the prescribed form provided
that :
a)
Details of the stores on board for consumption of tindal and the crew as well
as the articles owned by the crew are endorsed on the manifests both import and
export.
b)
A list of arms and ammunitions carried by such vessels is included in the
cargo book or presented with the vessel‟s manifest, and
c)
When a vessel has touched a port/ports outside India, a statement showing all
the stores, if any, taken at such ports and remaining unconsumed on arrival is
submitted.
Note 1:
If the store list has not been prepared when the Boarding officer boards
the vessel, he should obtain a list of arms and ammunition forming part of
ship‟s equipment and private property declaration of the officers and crew
members as in the case of vessels in foreign trade, seal up all the stores and
arms and ammunition for check when the store list is submitted.
Note 2 : If any sailing ship proceeds direct to any port, outside India, she may be
given ex-bond
supplies of stores on the clear understanding that on reversion to the sailing
trade, duty will be leviable on the entire stores brought by the vessel (and not
merely the unconsumed portion of ex-bond supplies taken by her at the first
Indian port on her return journey).
13.22.
Sailing of Vessels (Statement of Crew) Rules, 1960 attestation by
the Customs officer in the prescribed statement of crew forms
Under the sailing vessels Rules the Tindal or the owner of a sailing vessel is
required to maintain an up-to-date statement of crew in the prescribed proforma
which is required to be produced by him for inspection on demand by the
Registrar of the Port, the Regional Officers (Sails) or by any other officer
appointed in this behalf. The Ministry of Shipping and Transport vide their Min.
Notification No. 9 MT (6)/61 dated the 23rd July, 1964 issued in pursuance of
Rule 4 of the aforesaid Rules have appointed officers of customs are officers
613
competent to exercise the powers under the sailing vessels (statement of crew)
Rules,1960.
13.23
Contravention of statutory provisions under Sailing Vessels
(Inspection) Rules, 1952 by the owners of sailing vessels
All the sea-going sailing vessels/fishing vessels should be in possession of valid
Inspection Certificates in the interests of safety of life and property at sea. The
non-compliance of the statutory provisions is a punishable offence.
It is,
therefore, necessary that all the officers should strictly ensure that no port
clearance is granted to any sea-going sailing vessels/fishing vessels which does
not fully comply with the rule requirements pointed out above except the cases
where the specific permission of the Directorate has been obtained.
13.24.
Implementation of The Merchant Shipping (Sailing vessels) Rules,
1997
Attention of all Officers and Staff is hereby drawn to the „The Merchant
Shipping (Sailing Vessels) Rules, 1997 issued by the Ministry of Surface
Transport, published in the Gazette of India, March 1, 1997. As per Part III, Para
43(3) under Sub heading „Crew and identity card‟ of the said rules “No Officer of
Customs may clear outward any vessel unless the tindal thereof in possession of
permit and the other crew members of the crew thereof are in possession of valid
identity card issued by Regional Officer (SAILS).”
This Order is issued on the basis of the Gazette of India, March 01, 1997, and
Regional Officer (SAILS), Mercantile Marine Department, Director general of
Shipping, Ministry of Surface Transport letter No. 57-MURD (1)\98 dated 18.9.98.
This Order takes immediate effect and should be adhered to scrupulously.
[ Standing Order No. 7414 dated 24.11.98 issued by Commissioner of
Customs (Gen.), Mumbai ]
13.25.
ISSUE OF PASSES TO MECHANISED FISHING VESSELS-FIXING
OF VALIDITY PERIOD
614
In supersession of Ministry‟s instruction contained in circular F. No. 574/5/77LC-II dated 1.1.79 and F. No. 581/8/92-LC dated 30.11.92 regarding issue of
passes to mechanised and non-mechanised fishing vessels, I am directed to say
that it has now been decided that the periodicity for renewal of fishing passes
should be as under.
(i)
Non-Mechanised/Mechanised Fishing vessels – 6 months from the
date of issue
(ii)
2.
Fishing trawlers (both small & large) - 3 months from the date of issue
Necessary instruction to this effect may please be issued to all concerned
immediately. They should also be instructed to ensure that renewal of the
seasonal fishing passes is as far as possible completed on the same day on
which the renewal is requested, without giving any cause or complaint of
harassment or delay. Further at the time of renewal full verification may also
be carried out.
[ Circular No. 18/95-Cus. dated 6/3/95 in F. No. 581/8/92-LC ]
3.
Fishing passes should be issued to fishermen as before till a Nodal Agency is
created for the
issue of passes to fishermen.
[ Ref: Board‘s Letter F. No.:-394/116/2005-CUS(AS) dtd. 04th December,2007)
13.26.
VESSELS CARRYING COASTAL GOODS – RELAXATION IN
CUSTOMS PROCEDURES
Section 98-A of the Customs Act, 1962, empowers the Central
Government to grant exemptions generally, either absolutely or subject to certain
conditions, to the coastal goods or to vessels carrying coastal goods from all or
any of the provisions of the Chapter XII of the Act.
(A) Please refer to Notification 43/97-Customs (N. T.) date 11th September, 1997
issued under Sec. 98 A of the Customs Act, 1962 to exempt vessels from the
provisions of Section 92, 93, 94, 97 & 98 (1) of the said Act.
2. The relaxations are applicable to the vessels which exclusively carry coastal
goods and ply as coastal vessels. It will not be applicable for vessels which
615
convert the status from foreign run to coastal run & vice-versa. The loading &
unloading operation by coastal vessels must take place at separate & exclusive
berths in the ports where both coastal and foreign traffic is handled. The
provisions of Section 95, 96 & 98 (2) will also remain operative in case of such
vessels. In terms of section 95, the master of vessels is required to maintain
“advice book” and the proper officer of customs can inspect the book and make
entries as deemed fit, relating to goods loaded at the port.
In terms of section 96 the coastal goods can only be loaded or unloaded at
places notified under section 7 of the Customs Act, 1962. In terms of section 98
(2), the provisions contained in section 37 & 38 are applicable for coastal goods
as applicable to vessels carrying import and export goods.
Accordingly, the Customs Officers would continue to have powers to board
and vessels carrying coastal goods and can require the person incharge of
Vessels to produce any documents & to answer
any question. They should
devise selective checks of coastal vessels, at random both at the ports, of loading
and unloading so that there is effective check and the impression that the
department has abdicated its responsibility, does not gain ground.
The light dues charges leviable on such coastal vessels may be collected by
the customs till alternate arrangements are made by Ministry of Surface
Transport.
In case of the vessels which change their status from foreign to coastal or vice
versa, the existing provisions contained under Chapter XII of the Customs Act,
1962 shall continue to be operative.
[Circular No. 40/97-Cus.dated 19/9/97 in F.No. 450/86/92-Cus. IV ]
(B) Please refer to circular No. 40/97-Cus (NT), dated 19.9.97 on the above
subject. In continuation of earlier measures, the following further relaxations have
granted in the case of vessels carrying coastal goods exclusively.
2. By notification 14/98 Cus. (NT) dated 27.2.98, the earlier notification No. 52Cus, dated 1.2.63 has been rescinded. The earlier notification 52-Cus, dated
616
1.2.63 required the vessels carrying coastal goods to file IGM/EGM in terms of
the provisions contained in section 30 and 41 of the Customs Act., 1962,
Consequently the vessels carrying exclusively coastal goods will not be required
to file IGM/EGM.
3. In terms of notification 15/98-Cus. (NT) dated 27.2.98, vessels carrying
exclusively coastal goods have been exempted from the delivery of Advice Book
on arrival at each port of call to the proper officer of Customs at that port, as
required u/s 95 (1) and 95 (2) of Customs Act, 1962. However, the master of
each vessel shall carry the Advice Book on Board the vessel, and the proper
officer of customs may, whenever the deems necessary, call for the Advice Book
for his inspection or inspect the same on board the vessel.
[Circular No. 16/98-Cus. dated 11.3.98 in F. No. 405/86/92-Cus.IV ]
( C )
Apropos Govt. of India Notification No. 43/97-Customs (N.T.) dated
11.09.97 and followed by Ministry of Finance, Department of Revenue Circular
No. 40/97 in F.No. 450/86/92 Cus IV dated 19.09.97 issued under Section 98 of
Customs Act, 1962, the vessels carrying coastal goods exclusively are hereby
exempted from the provisions of Section 92, 93, 94, 97 and 98 (1) of the said Act.
Henceforth
1.
The consignor of coastal goods need not make an entry for the goods being
shipped nor file any bill as prescribed in Section 92 of Customs Act, 1962,
with the customs authority.
2.
Master of such vessel need not obtain permission from Customs authorities
for loading and unloading.
3.
The mater of such vessel need not carry or deliver the bill pertaining to the
goods carried by the vessel.
4.
The master of such vessel need not obtain permission for clearance of the
cargo at the destination from the customs authority.
5.
No written permission from customs authority is required for the master of
such vessel to cause or permit the vessel to depart from the port.
6.
No customs supervision is required for loading and unloading operation of
such vessels at the designated place.
617
7.
No customs restrictions will be there on such vessels for loading and
unloading operations on Sundays, holidays and after working hours.
These relaxations are applicable to the vessels that exclusively carry coastal
goods and are engaged in plying as coastal vessels only. These relaxations are
not applicable for the vessels that convert the status from foreign run to coastal
run and vice-versa.
The loading and unloading operations must take place at a separate and
exclusive berth in the port, notified under section 7 of the Customs Act 1962 for
this purpose, so that mixing of the coastal goods with foreign goods is prevented.
A Shed in the Docks has been nominated as a place for loading and unloading
of the coastal cargo by Port Trust , which is now notified as a designated place
under Section 7 of the Customs Act, 1962.
Such coastal vessels berthing at the designated place as above are exempted
from the provision of the Section 92.93. 94. 97 and 98 (1) of the said Act.
However, they are not exempted from the provisions of the Section 95 and 96 of
the Customs Act.
As such the customs officers in-charge of the respective
shed/section in the Docks would continue to have powers to board these vessels
and require the person in-charge of the said officer shall carry selective checks
on such vessels, at random. The checks as a matter of routine would no longer
be necessary. If any discrepancies are noticed suitable endorsement will be
reported to Assistant Commissioner of Customs (Docks)/(Preventive General).
As such if becomes imperative on the master of the vessel to maintain advice
book on board and produce the same to the customs officer for inspection
whenever demanded as laid down under Section 95 of the Customs Act, 1962.
The light dues may be collected by the customs authorities until alternate
arrangements are made by the Ministry of Surface Transport.
The carting and delivery of the coastal goods will be carried out through the gate
exclusively assigned for this purpose. The Port Trust has assigned a Gate in the
Docks as a gate to be exclusively used for this purpose. The delivery/transport
challans shall be distinct and separate for the coastal goods wherein the details
such as number of packages, name of the vessel and time of delivery at the gate
or the shed as the case may be shall be mentioned on the said challan.
618
[Based on Standing Order No. 7438 dtd. 15.03.99 issued by Commissioner
of Customs (General) in F.No. S/43-705/97P]
13.27.
Use of Foreign Going Vessels as Lightering Vessels
It has been observed that the Steamer Agents of foreign going/foreign flag
barges/tankers seek / obtain permission for use of the same for stream discharge
of petroleum products/chemicals/cargo (bulk) from the importing vessels (i.e.
mother vessels). For a vessel to be used as a lightering vessel, it has to be a
coastal vessel, as, such vessel are plying between the mother vessel in stream
and the place of landing of cargo. It has also been observed that such vessel
after arrival from abroad, discharge import cargo and thereafter obtain Export
rotation number and remain in anchorage for indefinite period without giving
export programme of the vessel.
Here it may be clarified that the vessel which has already entered for export
cannot be used for the purpose of Coastal Trade or for lightering purpose, since
these vessel are eligible for supplies of Bonded Stores/provisions/fuel on the
strength of export rotation number. Thus such vessels ply in the harbour/coastal
area and often simultaneously enjoy the benefits of foreign going vessels. This is
not only irregular but also incurs loss to the govt. revenue. It may also be clarified
that such lightering vessels are required to obtain necessary certificate from the
Director General of Shipping in terms of provision of the Merchant Shipping Act
and also required to be converted from Foreign Trade to Coastal Trade.
In the light of the above, it is hereby directed to all concerned that while
recommending/granting permissions for stream discharge it should be ensured
that vessels in which the cargo is to be discharged (i.e. lightering vessel) is a
coastal vessel or is converted into a coastal vessel, if it is a foreign flag/foreign
going vessel. Secondly, the officer posted for supervision over the stream
discharge of import cargo/or concerned Section Officer or Boarding Officer if
notice that the lightering vessel is also a foreign going vessel, he should seal the
bonded store on board the vessel and also stop supply of bonded
stores/provision/fuel till such vessel is engaged in coastal run. However, it is
619
clarified that such vessel can be allowed to accept stores/provision/fuel under the
cover of free Shipping Bill. Also such incidents may be brought to the notice of
A.C./Export [through A.C.P.(G)] for cancellation of Export rotation number.
@@@@@@@@@@@@
620
CHAPTER – FOURTEEN
14.
OIL & PETROLEUM
The import, transportation & possession and storage of Petroleum and Oil are
governed by the provisions of the Petroleum Act, 1934 and the Petroleum Rules,
1976 (hereinafter referred to as Petroleum Rules) and certain special procedures.
This work is usually attended to by a separate unit, known as Oil Unit in major
Custom Houses. The Oil Unit includes Appraising, Preventive and Ministerial staff.
The work attended to by the Appraising Unit is confined to the assessment and
completion of the Bill of Entry, covering the imports of oil. The Preventive staff
attached to the Unit attends to field work, like acceptance of Bonds, supervision of
discharge of oil into tank-lorries, coordinating the procedure with Central Excise,
wherever necessary, and all items of work connected with the closure of IGM.
14.01 Important Definitions
14.01.01
(a)
Section 2 of the Petroleum Act, 1934:
―Petroleum‖ means any liquid hydro-carbon or mixture of hydrocarbons and
any inflammable mixture (liquid, viscous or solid) containing any liquid hydrocarbon;
(b)
―Petroleum Class A‖ means petroleum having a flash-point below twentythree degrees centigrade;
(c)
―Petroleum Class B‖ means petroleum having a flash-point of twenty-three
degrees centigrade and above but below sixty-five degrees centigrade;
(d)
―Petroleum Class C‖ means petroleum having flash-point of sixty-five
degrees centigrade and above but below ninety-three degree centigrade;
(e)
―Flash-point‖ of petroleum means the lowest temperature at which it yields a
vapour which will give a momentary flash when ignited and is determined in
accordance with the provisions of the Petroleum Act, 1934 and its rules.
14.01.02
Rule 2 of the Petroleum Rules, 1976
621
(a)
―Installation‖ means any premises wherein any place has been specially
prepared for the storage of petroleum in bulk, but does not include a wellhead tank or a service station;
(b)
―Petroleum in bulk‖ means petroleum contained in a tank irrespective of the
quantity of petroleum contained therein;
(c)
―Store shed‖ means a building used for the storage of petroleum otherwise
than in bulk, whether forming part of an installation or not, but does not
include a building used for the stores petroleum exempt from licence under
Sections. 7, 8, or 9 of the Petroleum Act, 1934;
(d)
―Tank‖ means a receptacle for petroleum exceeding 1,000 liters capacity;
(e)
―Well-head tank‖ means a tank into which crude petroleum flowing or being
pumped from an oil well is first discharged.
14.02 Import of Petroleum
14.02.01
Licence granted under Rule 14 of the Petroleum Rules is necessary for
import of Petroleum (except Petroleum in small quantities as mentioned under
Sections 7, 8, & 9 of the Petroleum Act, 1934). However, import of Petroleum Class
„B‟ & Class „C‟ in a Ships Stores and manifested as such is exempt from Licence.
14.02.02
Rule 16 of the Petroleum Rules provides that Petroleum shall not be
imported into India by sea except through the ports of Mumbai, Calcutta, Cochin,
Haldia, Kandla, Chennai, Marmagoa, Okha, Port Blair, Visakhapatnam, Tuticorin and
Mangalore. However, Commissioner of Customs may on the recommendation of the
Chief Controller allow import of Petroleum Class B or Class C otherwise than in bulk
through any other port.
14.02.03
Rule 17 of the Petroleum Rules stipulates that (a) the master of every
ship-carrying petroleum shall deliver to the pilot before entering any port, a written
declaration in Form I (given below) under his signature. No such declaration is
necessary if the agent of a ship deliver such declaration signed by him to the
Conservator before the arrival of such ship and (b) The pilot shall make over the said
declaration to the Conservator without delay who shall forward it to the
Commissioner of Customs.
622
FORM I
(See rules 17 and 26)
Declaration to be made by the Master or agent of a ship carrying petroleum by
sea before entering port or by the importer or his agent before importing
petroleum by land.
Name of the ship
Particulars of the carriage
Name of
Total quantity
Quantity of
Name
of
Remarks
Petroleum
in the ship
petroleum.
port /place
or carriage.
to be landed
of import
in India
Petroleum Class A which can be used
in an internal combustion engine.
Other petroleum
Class A
Petroleum
Class B
Petroleum
Class C
Signature of importer or his agent.
Signature of Master or agent of
the ship.
14.02.04
Rule 19 of the Petroleum Rules stipulates that (a) every person
desiring to import petroleum shall furnish personally or through his agent to the
Commissioner of Customs a certificate of storage accommodation in Form II (given
below) signed by such person or his agent; and the license or authenticated copy
623
thereof for the import and storage of petroleum. However, this requirement shall not
apply to the import, otherwise than in bulk, of petroleum exempted under Sections 7,
8, 9 and 10 of the Petroleum Act, 1934. Further, the furnishing of a license is not
necessary for the import of Petroleum Class C in bulk quantity exempted under
Section 7 of the Act. Additionally, a person may import Petroleum Class A in bulk,
even, if not holding a license for storage at the port of importation; or the storage
accommodation in the premises licensed in his name is not sufficient to hold the
quantity of petroleum intended to be imported. However, in both cases adequate
advance arrangements to the satisfaction of the Conservator must be made to
distribute the petroleum from the port of import to the licensed premises for storing
such petroleum.
FORM II
(See rules 19 and 26)
Certificate of storage accommodation
I hereby declare that I propose to store the following consignments of
petroleum arriving per ……………(name of ship or particulars of carriage)……… in
………(name of port or place of import)… on or about… ….(date, month, year)……..
at the storage tanks or sheds, particulars, of which are given in items (i) and (ii) of
Col. (1) of the statement below and I certify that the capacity as shown as available
in item (iii) of the said column are duly licensed for the storage of petroleum in
question.
Signature of importer or his
agent.
Dated the …………………
STATEMENT
Description of import and storage Petroleum
capacity
Class C
Class A
Petroleum
Petroleum
Class B
624
(1)
(2)
(3)
(4)
(i) Total licensed capacity of storage tanks.
(ii) Total capacity available in storage tanks.
(iii) Capacity to be utilized by present consignment.
(i) Total licensed capacity of storage sheds.
(ii) Total capacity available in storage sheds.
(iii) Capacity to be utilized by present consignment.
14.02.05
Rule 20 of the Petroleum Rules (1) No imported petroleum shall be
landed except with the permission of the Commissioner of Customs who shall grant
this permission after receiving the testing officer‟s report, the certificate of storage
accommodation in Form II (if required) and the licence or an authenticated copy of
the licence (if required). If the Commissioner of Customs is satisfied that petroleum
imported otherwise than in bulk is not intended to be stored in India but is intended to
be despatched immediately after landing to any place outside India, he may waive
the requirements of rules 14 and 19 and by written order permit the same subject to
such conditions as he may specify such petroleum to be landed for the purpose of
immediate despatch to that place. At the same time the power Commissioner of
Customs is empowered to detain the petroleum under any other law or rule for the
time being in force.
14.03 Storage Tanks for Petroleum Imported in Bulk
14.03.01
Only such storage tanks in companies installation at different ports
shall be used for reception and storage of petroleum imported in bulk from Foreign or
Indian Refineries, as are calibrated by C.P.W.D. and for which duly certified
calibration charts are received and accepted by concerned Asstt. Commissioner.
14.03.02
For tanks with bottoms, the calibration should be carried after every ten
years and for tanks with oil bottoms the second calibration should be carried out five
625
years after the first calibration. The third calibration should be carried out ten years
after the second, if the variation observed at full product height is less than 0.25%
during the second calibration as compared with the previous calibration.
14.03.03
When any tanks authorised for reception and storage of dutiable
petroleum in bulk under Section 8(1) of Customs Act, 1962 are intended as private
warehouses for storage of petroleum product in bond under Chapter IX of Customs
Act, 1962 the owner shall apply for a licence under section 58 of Customs Act, 1962.
The Oil Officer shall verify whether the tank is empty and whether calibration chart
duly certified by C.P.W.D. is valid. After scrutiny of the submitted documents, the Oil
Officer, shall forward the documents to the concerned Asstt. Commissioner for
granting the licence.
14.04 Discharge,
Sampling,
Assessment
and
Clearance
for
Home
Consumption and Warehousing of Liquid Cargo in Bulk
14.04.01
The following procedure is prescribed in respect of discharge and
clearance of liquid in bulk though pipe lines / tank containers for home consumption /
warehousing in the bonded warehouse.
(a)
The quantity shown in the Bill of Lading reflected in the IGM should be prima
facie accepted.
(b)
The Bill of Entry for the liquid cargo in bulk shall be assessed to duty by the
dealing group or Oil unit, as the case may be.
626
(c)
On duplicate copy Bill of Entry the Appraiser will give the following
examination order:(i)
Before allowing discharge, please inspect and verify whether the
person in-charge of the vessel or his agent has produced the ullage
survey report prepared at the port of loading and certified by an
independent Surveyor. If so, please state the quantity mentioned in the
ullage survey report.
(ii)
Please inspect the cargo and before allowing discharge, inspect and
certify the ullage survey report prepared at this port and state the
quantity mentioned therein. Thereafter allow discharge through the
pipeline/tank lorries and forward samples in duplicate to Dy. Chief
Chemist‟s laboratory for test.
(iii)
After discharge, certify the fresh survey to ascertain the quantity
discharged and record shortages/excess if any.
(iv)
In cases where bulk liquid cargo is pumped from the ship/tanker to
shore tank through regular pipelines, dip measurements in tank on
shore should be taken before and after pumping of liquid cargo, as the
tank receipt quantity should be taken as basis for levy of Customs duty
in all cases of pipeline transfer from ship to shore tanks.
(v)
In cases of bulk liquid cargo which are not discharged through regular
pipelines and intended to clear on payment of duty i.e. without being
warehoused in a shore tank, assessment may be done as per ship
ullage survey report.
(vi)
(d)
Allow samples for consignee‟s laboratory (wherever necessary).
Immediately on arrival of the vessel, the Steamer Agent shall arrange for the
ullage survey before discharging liquid cargo and shall apply to the Preventive
Superintendent of the Division where the vessel has berthed for supervising
the survey. The cost of such survey will be borne by the Steamer Agents.
Failure on the part of the Steamer Agents to arrange for such ullage survey
shall render them liable under Section 116 of the Customs Act for the loss of
duty on account of short shipped liquid cargo which is not properly accounted
627
for after full discharge of the cargo. In case of liquid petroleum products, the
Boarding Officer shall attend the survey. In case of any other liquid cargo,
where the Boarding Officer is not available, the Preventive Supdt. of the
concerned Division shall depute a preventive officer for this purpose.
(e)
The
importer
shall
present
the
duplicate
B/E
to
the
Preventive
Officer/Boarding Officer, attending the survey. Before conducting survey, the
Preventive Officer/Boarding Officer shall obtain a declaration from the person
in charge of the vessel about the type of crude of liquid bulk cargo brought by
the vessel and the quantities of such items. In case the person in-charge of
vessel or its agents produces the ullage survey prepared at the port of loading
and certified by an independent Surveyor, the Prev. Officer/Boarding Officer
should retain a copy of such survey report to be attached to the duplicate B/E
and quantity mentioned in the said ullage survey report should be accepted as
the correct quantity brought by the vessel for unloading. The copy of said
ullage survey report should be signed by the Preventive Officer/Boarding
Officer, by the ship owner and the consignee‟s representative. A spare copy
of Bill of Lading will also be obtained and attached to the duplicate Bill of
Entry.
In order to ascertain the short landed quantity the Master of the
vessel/ship owner shall produce a load port ullage survey report along with
Bill of Lading.
This report shall also be given to the Preventive Officer
attending to the ullage survey at the port of discharge.
(f)
Before, permitting discharge of liquid bulk cargo, an ullage survey should be
carried out under the supervision of the Preventive Officer/Boarding Officer
and such ullage survey report shall also be signed by the Preventive
Officer/Boarding Officer, the ship owner and the consignee‟s representative
and attached to the duplicate copy Bill of Entry.
628
(g)
Importers shall give a copy of pre-lightering and post-lightering ullage survey
report to the Preventive Officer attending to the survey immediately on
completion of survey, who in turn shall pass it on to the Appraising Officer/Oil
Unit under acknowledgement within 24 hours thereof.
(h)
Even in cases where shore tank receipt based on dip measurements are the
basis for quantification of bulk liquid cargo for the purpose of assessment, the
liability of the master/agent for penal action under Section 116 of Customs
Act, 1962 will continued to be fixed by comparing Ship‟s ullage report at the
port of discharge and the ships load port ullage quantity or Bill of Lading
quantity, if the former is not made available by Master/Agent.
(i)
The vessel shall thereafter be permitted to discharge liquid bulk cargo. In
cases where the cargo is discharged through regular pipelines from ship to
shore tanks, dip measurement of tanks on shore should be taken before and
after pumping. In case of liquid bulk cargo other than petroleum product,
examination
and
drawal
of
sample
will
be
done
by
the
shed
appraiser/examiner in usual manner. Sealed samples will be forwarded to Dy.
Chief Chemist‟s laboratory for test and wherever necessary to the consignee‟s
in house laboratory.
(j)
Testing of the goods imported by Govt./Semi Govt./Undertakings shall be
dispensed with, where it is felt there is no dispute regarding classification.
However, drawal of samples and testing of sensitive goods should be carried
out if warranted and at the discretion of Asst. Commissioners i/c Groups.
(k)
Sample testing of goods supplied by reputed foreign manufacturers shall be
dispensed with and may be drawn at random. Similarly, testing of the goods
629
of reputed brand name shall also be dispensed with, but resorted only at
random basis. However samples of repeated imports by regular importers
should be drawn at random and by surprise.
The goods which are
standard/straight and having no dispute regarding classification need not be
tested only for the purpose of composition.
(l)
Sample testing of the goods imported under DEEC scheme shall be restricted
to one per book. However, the decision to test goods should be taken at the
level of Asst. Commissioner i/c. Groups and if it is felt that there is no need for
the testing sample of imported goods, then clearance may be allowed without
testing.
[Circular No.96/2002, dated 27.12.2002]
14.05 Validity Of Tests
14.05.01
The test reports issued by Dy. Chief Chemist‟s Laboratory are valid for
two years and three years in case of imports by traders and manufacturers,
respectively. In case of chemicals imported under brand name, the validity of the test
will be for 3 years and 5 years for traders and manufacturers, respectively.
14.05.02
After discharge, a fresh survey shall be carried out in the presence of
the Customs Preventive/Boarding Officer and the discharge completion survey report
shall also be signed by the Customs Officer, the ship owner and the consignee.
Immediately after discharge of bulk liquid cargo such survey reports along with the
quantity ascertained on board the vessel before and after discharge, quantity
ascertained as per dip measurements in shore tanks wherever applicable,
630
shortages, if any, shall be duly endorsed on duplicate copy of B/E for onward
submission to the Oil Unit or the MCD as the case may be, for appropriate action.
14.05.03
In case of difference between the quantity mentioned in the Bill of
Lading or the Ullage survey report at the port of Loading and the ullage survey report
at the time of discharge, such difference shall be considered as cargo short landed
and for which the ship owner shall be held responsible. The master of the
vessel/ship owner shall be liable to pay penalty as per the provision of Sec.116 of
the Customs Act, 1962 in case the discharged quantity is less than the quantity
mentioned in the ullage report of the load port. In all such cases port clearance for
the vessel would not be given before the case is adjudicated or a Bank Guarantee
equal to twice the amount of duty difference on the short landed quantity is furnished
by the steamer agent/master of the vessel.
14.05.04
In cases where the bulk liquid cargo imported is not discharged through
reqular pipelines, if any excess quantity is detected after discharge, the Oil Unit will
finalise the assessment of liquid petroleum product after taking into consideration the
excess quantity and recover the differential duty leviable therein. In all such cases,
the Customs Officer before giving out of charge shall immediately refer the duplicate
B/E to the dealing group for recovery of differential duty on post Bill of Entry in usual
manner.
14.05.05
The discharge quantity as per the ullage survey report carried out
under the supervision of the Customs as indicated in the above para shall be treated
as the quantity cleared for home consumption or removed for warehousing as the
case may be.
631
14.05.06
The Oil Companies shall take the store tank dip measurements in
cases where the cargo is discharged through regular pipe lines, in the presence of
P.O. and give a copy of the same to P.O., who will pass on this document to the
Appraising Officer/Oil Unit for enabling him carry out the assessment and determine
the duty liability. The importer shall submit a Bank attested invoice or certified copy
thereof for purpose of assessment. In order to ascertain the actual freight paid to the
shipping company, the importer shall submit the copy of the charter party agreement
in addition to the documents which are being submitted at present.
14.05.07
In all cases where Customs duty is leviable on ad-volerem basis, the
assessment of bulk liquid cargo should be based on invoice price which is the price
paid or payable for the imported goods i.e,. transaction value, irrespective of quantity
ascertained as per shore tank measurement or any other manner.
Further,
irrespective of delivery at more than one port, the value should be apportioned based
on the quantity intended to be discharged at the relevant ports. However, where the
Customs duty is leviable at specific rate, the determination of quantity would be
relevant for levy of Customs duty. In the case of bulk liquid cargo imports, the shore
tank receipt quantity should be taken as the basis for levy of Customs duty. All
pending provisional assessment should be finalized accordingly. In the case of liquid
cargo imports, which are cleared directly on payment of duty without being
warehoused in a shore tank, assessment may be done as per ship‟s ullage survey
report.
[Circulars No. No.96/2002, dated 27.12.2002 and No.6/2006-Cus, dated 12.1.2006]
14.06 Dis-Continuation
of
Warehouse to Another
Removal
of
Petroleum
Products
from
One
632
14.06.01
With the withdrawal of facility of transfer of warehoused petroleum and
petroleum products without payment of Customs duty from the warehouse at the port
of import to inland warehouses, the warehousing facility for these items is available
only at the port of import and removal to inland bonded warehouse without payment
Customs duty will not be allowed.
This shall not apply to goods exempt from
payment of Customs duty in terms of Customs Notifications or goods imported by
EOUs, STPs, EHTPs and SEZs.
[Circulars No. 8/2005-Cus, dated 14.2.2005 and
No. 9/2005-Cus, dated 15.2.2005]
14.07 Storing in the Same Tank Duty Paid Indigenous and Imported Oil for
Export Under Claim for Rebate of Central Excise Duty or Drawback of
Customs Duty
14.07.01
Tanks earmarked by the Oil Companies for the purpose will be
licensed and will be known as “L.M. Tanks” (Licensed Mixed Tanks) and will be duly
calibrated by the CPWD authorities.
14.07.02
Each receipt into and delivery from the L.M. Tanks shall be under the
direct supervision of Central Excise/Customs Officer, who will be responsible for due
accounting of the oils for the purpose of granting rebate of Central Excise duty or
Drawback of Customs duty, as the case may be, against claims made by the Oil
Companies, in respect of exports.
633
14.07.03
For determining the actual quantity covered by each consignment dips
shall be taken before and after the transfer of the oil into the tanks. As soon as the
filling is complete, actual tonnage of the oil is determined on the basis of instructions
already in force and the particulars thereof duly entered in the “Tank Register” (given
below).
14.07.04
For withdrawing oil from the L. M. Tanks, the oil companies shall apply
in “The Application for Withdrawals” (given below). After its due admission by the
Central Excise/Customs Officer in charge, the oil shall be permitted to be withdrawn.
For determining the actual tonnage withdrawn, dips shall be taken “before” as well as
“after” each withdrawal, and the tonnage arrived at and recorded in the tank register.
14.07.05
In the case of withdrawals for direct shipment out of India, a duly
processed shipping bill will, in addition, be required before permitting transfer of oil
from the L. M. tank to the vessel (either for bunker purpose or as trade stocks).
14.07.06
Each delivery from the L. M. Tank whether for home consumption or
export will be adjusted against the receipts, on the basis of “First In First Out”.
14.07.07
In respect of each withdrawal for shipment out of India, the actual
quantity lifted from the tank together with other relevant particulars shall be
communicated, in “Intimation of Shipment Particulars” (given below) to the Central
Excise Office or the Custom House depending upon the allocation of the withdrawal
either to the indigenous or to the imported stock put into the tank.
634
14.07.08
On the basis of the above advice, Central Excise rebate/Customs
Drawback shall be considered and sanctioned when individual claims are made in
this respect by the Oil Companies.
TANK REGISTER
Tank No. ………..
Name of Oil Company……………..
Grade of Oil…………….
S. No.
Date
Supervising
Whether
A.R.I. or
Quantity of oil
Amount
Remarks
Indigenous
B/E No.
or imported
received („Before
of duty
Officer
& After dip
initials
readings also
to be indicated)
1
2
3
4
5
6
7
8
WITHDRAWALS
S.No. Whether for
Quantity withdrawn
Allocated to
Amount of
(before & after dip
indigenous/
of Central
rebate
Shipment or
635
Excise
Home consumption readings also to
imported stock
or
drawback of
& if for shipment
be indicated)
(Corresponding
Customs
duty involved
receipt entry no.
to be stated)
9
10
11
12
Date of despatch of intimation of shipment particulars to
14
Signature of
Remarks
Central Excise or Custom House concerned
15
officer in-charge
16
17
APPLICATION FOR WITHDRAWALS
From : ………………………………………
To,
The Officer in-charge,
L.M. Tank No. ……….
Sir,
We request you to allow us to take delivery for home consumption (or for
shipment out of India) of (Quantity in Kilolitres or tonnes) of (grade of) oil from L.M.
636
Tank
No.
…………Duplicate
copy
of
Shipping
Bill
No…………………
dtd……………….. is enclosed herewith.
(strike this out if not necessary)
Yours
faithfully,
INTIMATION OF SHIPMENT PARTICULARS
From : The Officer in-charge,
L.M. Tank No.
To,
The Assistant Commissioner of Central Excise (or Customs)
Sir,
Re : Withdrawal of (grade oil) oil from L.M. Tank No. ………..for
Shipment out of India.
………………………….………….
On ……………(date) ……….. quantity ….(in kilolitres and tonnes) of
……………. Oil was withdrawn for shipment out of India. This quantity is allocated to
the stock received into the above mentioned tank under cover of ARI No./Bill of Entry
No…………
637
Yours faithfully,
14.08 Procedure for checking the out-turn
14.08.01
As soon as the documents are received in the Oil Unit, the Officer in
the Unit shall first compare the original and duplicate dip Statements and verify the
same with the out turns received. Before comparing, it should be verified whether the
quantities arrived at from dip measurements are standardized / adjusted with regard
to variations in temperature, density as per standards specified ender relevant laws,
rules etc.
14.09 Storing of Indigenous and Imported bonded stock of Mineral oils of
Same Grade in the Same Tank
14.09.01
The tank intended to be used for storing indigenous and imported
bonded stock of oil of the same grade should be earmarked by the Oil Company and
got approved by the Superintendent of Central Excise. Such tanks will be known as
“Bonded Mixed tanks” and after approving such tank/s, the Superintendent will
inform the Commissioner of Customs, the particulars of such tank approved for
storage of indigenous oil.
14.09.02
If such tanks are to be brought in operation for the first time, the Oil
Company should apply to the Superintendent of Central Excise, for including the
tank/s in their L-5 licence, if it/they is/are in the same installation and for approving
them as bonded mixed tanks. Such tanks should be got calibrated from the (PWD)
authorities as usual and the calibration charts also got approved by the Central
Excise officer.
638
14.09.03
After all the formalities are complied with, the Oil Company will be
allowed to store indigenous as well as imported bonded oil in such tank/tanks. Each
consignments of oil required to be stored in such bonded Mixed Tank should be duly
covered by either AR-3 application in case of receipt of indigenous bonded oil from
another bonded warehouse or by into Bond Bill of Entry duly passed in case of
imported oil.
14.09.04
Actual quantity covered by each consignment will be ascertained by
the Central Excise Officer in charge of the installation by taking dip before and after
receipt of oil and tonnage of oil determined as per instructions in force and
particulars thereof duly entered in the tank Register.
14.09.05
Each delivery from the Bonded Mixed tank, whether for home
consumption or for export will be adjusted against the receipt of indigenous /
imported oil on the basis of “First in first out”.
14.09.06
Before clearance of the consignment for home consumption, the Oil
Company should file a clearance document in form AR 1 in case of indigenous oil or
ex-bond Bill of Entry in the case of imported oil on the basis of “First In First Out”. In
case of indigenous oil, the usual Central Excise procedure for adjusting duty
provisionally on the proposed quantity to be cleared and finalising the AR1 on the
basis of actual quantity determined on the dips taken before as well as after each
delivery and recorded in the tank Register, will be followed. In the case of imported
oil, on production of ex-bond bill of entry which is provisionally assessed by Customs
and duty is paid on that basis, the Central Excise Officer in charge of the installations
will permit clearance of the consignment after taking dips. The actual quantity
cleared will be ascertained after taking the final dip on the closure of the operation of
clearance and recorded in the Tank Register. The Central Excise Officer in charge of
639
the installation will then communicate the particulars about clearance of imported oil
to the Customs Officer at the Customs House in the proforma (given below) on
receipt of the same, the Customs will finalise the assessments of Ex-Bond Bills of
Entry as per Section 18 of the Customs Act 1962.
PROFORMA
FORTNIGHTLY REPORT TO BE SUBMITTED BY PREVENTIVE OFFICERS INCHARGE OF OIL INSTALLATIONS
1. Installation
2. Number of Tanks
a. Bonded
b. Mixed bonded
c. Duty paid
Note: State reasons if there is any increase or decrease in the number of tanks
3. Total number of dips recorded during the period as under
a. Budget dips
b. Special dips
c. Monthly dips
d. Weekly dips
e. Before receipt dips
f. After receipt dips
g. Before transfer dips
h. after transfer dips
i. Before loading dips
j. After loading dips
k. Before bonding dips
l. After bonding dips
m. Before pumping dips
n. After pumping dips
4. Number of bonded transfers from the Installation to the other installations
a. No. of tank lorries/wagons or through pipeline
b. Total quantity in kilo-litres covered by (a)
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5. Number of transfers from one bonded tank to another bonded tank in the
installation
6. Quantity in Kilo litres withdrawn for Home-consumption
7. Quantity supplied as Bunkers to (in Kilo litres)1. Indian Navel vessels
2. Foreign going Vessels
8. Number and quantity of shipments to other Customs Ports.
Adjustment of duty on AR I will be made under the head “II Union Excise
Duties – Excise duty on ……….. (Products concerned)…. “ and adjustments of duty
on Bills of Entry will be made under the head “ Customs Import Duty”.
14.09.07
As regards clearance made from such “B.M. Tanks” for direct shipment
out of India either for bunker purpose or for trade stocks, in the case of imported oil a
duly processed Ex-bond Shipping Bill should be presented by the Oil Company and
the usual Customs procedure followed. In the case of indigenous oil, the oil company
should present the AR 4 application and follow the usual procedure for export of
such oil either under claim for rebate of duty or in bond.
14.09.08
In respect of imported stock received in the B.M. Tanks and cleared
either for shipment out of India or for home consumption, the particulars of actual
quantity received into the tanks and cleared, on the basis of “First In First Out”, will
be communicated by the Central Excise Officer in charge of the Bonded Installations
to the Customs Authorities in the above Proforma, depending upon the allocation of
the clearance to the imported stock of oil received into the tank.
641
14.10 Customs Duty Drawback Claim / Rebate of Duty of Central Excise in
respect of Fuel and Lubricating Oil Supplied to Aircraft
14.10.01
Oil Company will furnish to the Assistant Commissioner, Central
Excise, Refunds, and to the Assistant Commissioner of Customs, Oil Unit, Custom
House, a detailed statement indicating flight-wise figures of the quantity of
indigenous duty paid fuel taken by aircrafts which proceeded to foreign ports and the
quantity of fuel imported on such aircrafts when they arrive from foreign ports during
one year period. This statement will be certified by the Preventive Officer attached to
the Bonded Warehouse of Oil Company at the Airport, after verification of the
records. Oil Company will also indicate that they will withdraw the claims filed by
them with the Asstt. Commissioner Central Excise, Refunds, in respect of the duty
paid on indigenous fuel taken on such aircrafts during the period.
14.10.02
If on the basis of the figures furnished as above, the total quantity of
fuel imported in the tanks of the aircrafts works out to be more than the total quantity
of duty paid indigenous fuel that was taken in the tanks of the aircrafts, the duty of
Customs on the resultant difference will be paid by concerned Airlines by filling in the
oil unit of the Custom House a consolidated Home Consumption Bill of Entry wherein
details of the resultant quantity or fuel chargeable to Customs duty will be shown.
Oil Company will also subscribe a declaration to the effect that they have not claimed
rebate of duty of Central Excise in respect of indigenous duty paid fuel taken on
these aircraft.
14.10.03
If on the other hand, the total quantity of fuel imported in the tanks of
the aircrafts works out less than the total quantity of duty paid indigenous fuel that
was taken in the tanks of the aircrafts, the claim for rebate of duty of Central Excise,
in the prescribed forms, will be filed by Oil Company with the Asst. Commissioner,
Central Excise (Refunds).
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14.11 Fuel Loaded on the Indian Airlines Aircrafts proceeding abroad
14.11.01
Prior to refueling of the Aircrafts proceeding abroad, Oil Company will
furnish the figures of the fuel in the tanks of the aircraft from the metres/dips. The
readings will be taken in the presence of the Customs Preventive Officer attached to
Oil Company, Bonded Warehouses at Airport. The Customs Preventive officer will
verify the meter-readings and certify the figures, which will be shown in the flights
EGM.
14.11.02
Customs Preventive Officer will also Supervise the fueling of the
aircraft and certify the quantity of the fuel supplied to the aircraft from the Central
Excise Bonded Tanks for which Oil Company will file the Shipping Bills and AR-4
forms.
14.11.03
When the aircraft returns from abroad, the Preventive Officer will
ascertain from the meter of the aircraft the quantity of fuel in the tanks of the aircraft.
This quantity will be shown in the flights IGM.
14.11.04
Oil Company at Airport, will maintain a Register in the following
proforma:
STATEMENT OF THE FUEL AND OIL TAKEN ON ABROAD AND IMPORTED BY
AIRCRAFTS DURING THE MONTH OF …….……
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Sr.No. Date of
Marking of
Flight
Total quantity of duty
Total qty.
paid fuel in the tanks
from the
of fuel supplied
Departure
Air-carft
No.
Central Excise
Prior
to
refueling
Bonded tanks
1
2
3
4
5
6
Shipping Bill Nos. for the
AR-4A forms Nos. for
E.G.M. No.
Date of
Flight No.
Fuel supplied at Col.6
the fuel supplied as at
Arrival
Col 6.
7
8
9
10
11
Total quantity of fuel found
Total quantity of Lubricant oil found
I.G.M. No.
In the tanks of the aircraft
in the tanks of the aircrafts immediately
Immediately on arrival
on arrival
12
13
14
a) Total quantity of duty paid indigenous fuel in the tanks of the aircrafts prior to
refueling at the time of departures, during the month (i.e. monthly total of column
5)
b) Total quantity of fuel in the tanks of the aircraft on arrival during the month (i.e.
monthly total of column 12)
c) Total quantity of fuel chargeable to Customs duty (b-a)
d) Total quantity of fuel on which rebate of duty of Central Excise due (a-b)
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e) Total quantity of lubricating oil in the tanks of the aircrafts on arrivals during the
month (i.e. monthly total of column 13)
Signature of the Customs Preventive Officer Oil Unit.
Signature of Oil Unit
Bonded warehouse at Airport
Representative
Date
Date
Amt. of Customs Duty recovered on fuel as at (e) Rs. ………… Cash No. and Dt.
Amt. of Customs Duty recovered on lubricating oil Rs. ……….. Cash No. and Dt.
Application No. / Form „B‟ filed for rebate of Central Excise if any as at (d)
Signature of the Customs
Preventive Officer Oil Unit/Bond,
Date.
14.11.05
After completion of each Calendar month, on the first of the succeeding
month, the Oil Company will prepare a statement (in five copies) indicating all the
details as shown in the register above. The distribution of the copies of this
statement will be as under: (a)
One copy will be attached to the Home Consumption Bill of Entry or the
application for rebate of duty of Central Excise, as the case may be,
(b)
One copy will be detained by the Customs Preventive Officer,
(c)
One copy will be handed over to Oil Company,
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(d)
One copy will be handed over to Airlines and,
(e)
One copy will be forwarded to Asstt. Commissioner, Oil Unit.
14.11.06
After adjusting the quantities of the duty paid indigenous fuel against
the imported fuel, Oil Company will indicate the resultant quantity of fuel on which
duty of Customs is payable or the quantity of fuel on which rebate of duty Central
Excise is admissible, as the case may be. The resultant figures thus arrived at will be
shown in the Register and also in the statement compiled as above.
14.11.07
In case the resultant quantity of fuel is chargeable to duty of Customs,
the Oil Company will subscribe an endorsement on the Home Consumption Bill of
Entry that in respect of the duty paid indigenous fuel in the tanks of the aircraft prior
to departures for abroad, during the proceeding month, no rebate of duty of Central
Excise was claimed by them. This Statement will be countersigned by the Customs
Preventive Officer.
14.11.08
The Oil Company or Airlines, as the case may be, will file Home
Consumption Bill of Entry, in the Oil Unit, at the Custom House, for the quantity of
fuel on which Customs duty is recoverable. In case rebate of Central Excise duty is
due, then Oil Company will file claims with Asstt. Commissioner, Central Excise,
Refunds.
14.11.09
The aforesaid procedure will be applicable in respect of the fuel (a) of
the same type left in the aircraft at the time of arrivals and departures, (b) the rate of
Customs duty and Central Excise duty, as the case may be, leviable on such fuel, is
the same at the time of arrival and departure of such aricraft and (c) no Drawback of
Customs duty or rebate of Central Excise duty, as the case may be was allowed on
such fuel at the time of departures of such aircrafts from India.
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14.12 Lubricating oil on Aircrafts proceeding abroad
14.12.01
Lubricating oil is normally supplied to Airlines from the Customs
Bonded Warehouse of Oil Company, against ex-bond Shipping Bills. Therefore,
there is no question of any drawback or rebate in respect of such lubricating oil in
tanks and the quantity so supplied shall be ascertained by Oil Company and the
Customs Preventive Officer and recorded in the flights IGM and also in the register.
As in the case of fuel, duty of Customs on the total lubricating oil imported during the
month will be paid by Oil Company by filling a Home Consumption Bill of Entry.
14.13 Maintenance of Record of Recovery of Customs Duty on Fuel/Oil
14.13.01
One copy of the Bill of Entry will be forwarded to the Bond Preventive
Officer at Oil Company, The details of the recovery of duty on fuel and lubricating oil
will be indicated in the Register at the end of monthly statement by the Preventive
Officer. In case rebate of duty of Central Excise is due, then particulars of the claim
filed by Oil Company should also be recorded at the end of each month.
14.14 Receipt of Crude Oil from Bombay High
14.14.01
The following procedure shall be in force to regulate the arrival and
departure of the tankers transporting the crude from Bombay High to Butcher
Islands:
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(a)
The oil produced at Bombay High will be treated as indigenous crude oil and
only cess will be leviable under Ssection 15 of the Oil Industry (Development)
Act, 1974, which would be paid directly by ONGC to the Central Excise
Authorities at the Refineries.
(b)
The Crude oil will be transported by Tankers from the Bombay High to the oil
jetty at Butcher Islands. The Tankers transporting the crude will be treated as
coastal run and the “General Pass” facility will be extended to these tankers,
General Pass will be issued by the C.T.E. after taking the prescribed Bond
from the Agents for such vessels.
(c)
The ONGC will prepare a despatch note in the prescribed format for the
quantity delivered to each tanker. Immediately on arrival, the vessel will be
permitted to break bulk in anticipation of filing the IGM. The Master / Agents
will file the usual “Arrival Report” with the Preventive Officer posted at Butcher
Island alongwith the despatch note which will be forwarded to Coastal Trade
Establishment for completion of Inward Entry. The consignee will file a coastal
Bill of Entry alongwith a local IGM (as there will be no EGM) within seven
days of the arrival of the vessel or within such extended period as may be
allowed by the Assistant Commissioner indicating the actual quantity / grade
of crude oil received at the Refineries. On completion of discharge of the
cargo, the vessel will sail after obtaining the usual P.C. from the C.T.E.
Department.
(d)
Preventive Officer at Butcher Island will maintain a Register showing arrival
and departure of the Tankers with full particulars of cargo.
(e)
Since the pipe lines through which the crude from Bombay High will be
pumped into shore tanks will require flushing with imported crude, in order to
avoid congealing which results in plugging of the submarine pipeline, M/s.
Bharat Refineries Limited have indicted that tankers carrying imported crude
for Bombay will partly discharge into refinery tanks either of Bharat Refineries
Limited or the Hindustan Petroleum Corporation. Thereafter the remaining
cargo of imported crude from the tanker will be pumped into smaller tankers
stationed at the Marine Oil Terminal, Butcher Island. This quantity in most
cases will be approximately 4000 Tons. The imported crude in the tanker will
be used for flushing the crude oil discharge line at Bombay subsequent to the
discharge of Bombay High Crude. After the Bombay High Crude is loaded in
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such tankers which will contain a part of imported crude received earlier in
other tankers, the ONGC will prepare a quantity receipt in the form indicated
above in respect of the crude loaded in the tanker.
(f)
The tanker after reaching Bombay will discharge into the Bharat Refineries
Tanks. The quantity of Bombay High Crude discharged will be determined by
the normal method of taking dips before and after receipt of the Bombay High
Crude. During this period the imported crude will be remain on board the
tanker. After discharge of the entire cargo of the Bombay High Crude,
approximately 4000 tons of the imported crude retained on the tankers will be
used to flush the pipeline system used for discharging the Bombay High
Crude. The quantity of imported crude oil discharged earlier from the tanker
carrying the crude oil will be determined separately by tank dips and to that
quantity will be added the amount of imported crude discharged in the second
operation for flushing the pipelines, to arrive at the out-turn of the imported
cargo. Though all efforts will be made to prevent the mixing of the imported
and Bombay High Crude and attempts will be made to prepare separate outturn for the two types of crudes, in cases where the imported crude carried in
the tanker which will be used for bringing Bombay High Crude get mixed up
with the indigenous crude, the losses in respect of the imported crude in such
tankers will be worked out on pro-rata basis by taking into account the entire
quantity of the oil on the tanker. The total losses in respect of imported crude
oil will be arrived at by adding the loss worked in respect of the imported
crude brought by the second voyage to the loss. In respect of the imported
crude the upper limit of 1% will be adhered to.
(g)
For the imported crude the Import General Manifest will be filed in the Import
Department for the full qunatity. The part quantity of the imported crude will be
accounted for as direct discharge and the Balance of the imported crude will
be first transported to Bombay High and will be brought back in the tanker
carrying indigenous crude. No separate manifest will be filed for the quantity
of the balance crude carried to Bombay High and brought back. For the
Bombay High Crude brought by each of the tankers local IGM will be filed as
above.
(h)
It is possible that occasionally foreign tankers with a part of imported crude
required for flushing the pipe line may be diverted to bring Bombay High
649
Crude. In such cases the Customs Officer at Butcher Island will certify the
quantity of imported Crude retained on board the tanker before its departure
for Bombay High.
(i)
On return from Bombay High the agents of the tankers will file a local IGM for
the quantity of Bombay High Crude brought on the basis of the despatch note
issued by the ONGC officials.
(j)
The quantity of imported crude / Bombay High Crude will be accounted for as
stated above.
(k)
The Agents will apply for inventory of stores prior to the departure of the
tanker to Bombay High and will also file a list of stores remaining on Board at
the time of its departure for foreign port and will pay duty on stores consumed
between its departure to Bombay High and her final reversion to foreign run.
The Agents will also have the option to get the stores sealed with Customs
seal which they do not wish to consume during the period when the vessel will
ply between Bombay and Bombay High.
14.15 Declaration of ONGC Installations in Bombay High as Designated Areas
14.15.01
Any oil produced in the off-shore installations in the designated area or
within the territorial waters of India is deemed to be produced in India and subject to
the levy of Central Excise duties under Section 3 of the Central Excise & Salt Act,
1944. In case, however, the oil is produced at such of the installations which have
not been designated by the Ministry of External Affairs and which lie outside the
territorial waters of India, such oil would be deemed to be imported into India when
this oil is transferred to the mainland and be subject to Customs duties as specified
in the Customs Tariff Act, 1975.
[F. No. 450/65/92-Cus-IV, dated 28.9.1994 and Circular No. 28/95-Cus., dated 27.3.1995]
14.16 Sludge Oil
650
14.16.01
Sludge oil is accumulation of thick dirty oil especially in sump of internal
combustion engine and at the bottom of petroleum product storage tanks. The
sludge oil which contains waste oil, water, chemicals (used for cleaning tanks) is
collected in slop tanks on the ship. In routine course, the sludge is discharged into
the sea. Accordingly, the International Maritime Organization adopted an
International convention called MARPOL 73/78 to prevent marine pollution, including
pollution by slop and sludge from ships. India is a signatory to the International
Convention for the Prevention of pollution from ships 1973 & The Protocol of 1978
(MARPOL 73/78) and the convention entered into force for India from 24.12.1986.
Port authorities of India have undertaken to provide adequate reception facilities for
receiving sludge, bilge water, slops and other wastes from ships calling at its ports.
Private agencies were allowed to receive such sludge & waste with due permission
from concerned authorities, licensing them from reception transportation, storage,
treatment & disposal of the same.
[T-5/1-02/DDIST, dated 5.4.1995 from IMO, Marine Environment Division and No. 18 SSMD dated 25.2.1996 from Ministry of Environment & Forests]
14.16.02
Waste oil and oil emulsions are specified as Hazardous wastes as per
Schedule to Rule 3(i) of the Hazardous Wastes (Management & Handling) Rules,
1989 issued under the Environment (Protection) Act, 1986. Rule 11 of these Rules
stipulates that import of hazardous wastes from any country to India shall not be
permitted for dumping and disposal of such wastes. However, import of such wastes
is allowed for processing or reuse as raw material, after examining and approval of
the State Pollution Control Board. Waste oil derived from the normal course of ship‟s
operation and covered by the MAROL (73/78 Protocol Convention) is permitted to
discharge without license on payment of Customs duty, but only to persons having
reprocessing facilities approved by the State Pollution Control Board. The person/s /
firms so authorised are required to obtain order / permission from ship owners to
651
take sludge derived from normal course of a ship engines operation. On the strength
of this order, a local invoice is prepared with appropriate value and quantity. Along
with all the above mentioned documents a Bill of Entry shall be filed for clearance of
sludge oil. The assessment shall be done under Customs Tariff Heading 2710.00
without CCP. The Bill of Entry shall be assessed provisionally under Test Bond.
Once the sludge is routed into drums and properly closed and rolled on the ground in
order to make the contents homogenous, a sample shall be drawn and poured into a
previously cleaned empty drum (as many samples as there are drums) and the drum
containing samples properly closed and rolled on the ground to make its contents
homogenous. Thereafter, a representative sample shall be drawn into a previously
cleaned bottle, sealed with Customs seal and sent to the Customs laboratory for test.
The final assessment shall be done based on the result of test report.
14.17 Duty on Fuel Oil – Supply Ex-Bond Stock to Vessels in Foreign Run
which Subsequently Divert to Coastal Run
14.17.01
The following procedure is prescribed for collecting duty when a Vessel
on a foreign run after taking duty free stock of fuel oil as bunkers diverts to coastal
run, without prior notice.
(a)
On the arrival of a vessel, the Steamer Agents shall address a letter to the
Asst. Commissioner (Imports), intimating the shipping activities of the vessel
at the port of the arrival. On receipt of this letter, the Import Department
should forthwith determine the character of the vessel‟s voyage and, in the
event of any change, intimate the fact of reversion from foreign to coasting
trade and vice versa to the Export and Preventive Departments, to enable
them to take such action as the reversion may call for.
(b)
“Free” Shipping Bills will be filed in the Export Department to cover shipment
of Excise bonded oil as ship‟s stores, with duplicate and triplicate copies of
AR-4 forms. The words “Shipment from excise bonded stock” may be
superscribed conspicuously on the shipping bill.
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(In respect of shipment of warehoused goods, on Customs side, the Shipping
Bills is marked “Shipping Bill from Bond”).
(c)
Full particulars of oil supplied from excise bonded stock (S.P.No, AR-4 No,
Grade of oil, quantity shipped, source of supply) should be entered at the
appropriate place in the vessel‟s stores list, in the same manner as stores
supplied from Customs bonded stocks are entered. These particulars should
be entered in the copy retained in the Preventive Department and also in the
“Circulating copy” if the vessel is touching Customs Port(s) on route to a
foreign destination.
(d)
If the vessel is touching any Customs Port(s) on route to a foreign destination,
the certifying Preventive Officer should mention in the certificate after the
words “which left for” the names of such ports in the same order as mentioned
in the port clearance of the vessel, instead of mentioning only the foreign port
of destination. From such certificate, the Central Excise Department which
permitted ex-bond supply of stores will know that the vessel did not clear
directly for a foreign port, after bunkering.
(e)
If a vessel reverts from foreign to coasting trade at any of the Custom Ports
on route to a foreign destination, the Customs Authorities at the port of
reversion shall forthwith intimate the Central Excise Department which
permitted supply of oil ex-bond under AR-4 procedure, any such change in
the character of her voyage together with such particulars as grade and
quantity of oil on which excise duty may be recoverable.
14.18 Transfer of Bunker Oil
14.18.01
Oil imported in bunkers is “Stores” and therefore subject to provisions
of Section 86(2) of the Customs Act, 9162. Transfer of oil from the bunkers of one
foreign going vessel to the bunkers of another foreign going vessel may be
permitted.
653
14.18.02
Oil imported as cargo by one foreign going vessel should not be
allowed to be manifested for transhipment to the bunkers of another foreign going
vessel as oil imported as cargo are not “Stores” within the meaning of Section 86(2)
of the Customs Act, 1962. The correct procedure to be followed in such cases is the
drawback procedure under Section 74 of the said Act.
14.18.03
Agents may be permitted to retain on board any portion of oil for
bunker use by entering them originally on a separate sheet of the IGM. Transfer of
further quantities to bunkers from cargo tanks or holds will be allowed on
amendment of the relative manifest and fulfillment of following conditions:(a)
The oil should be transferred direct from the cargo tanks or holds to the
bunkers without having been landed at an intermediate stage,
(b)
No Bill of Entry should have been filed for the quantity transferred,
(c)
The ship should remain in the foreign trade, and
(d)
The Department should be satisfied that the quantity transferred is accurately
measured. This condition will be considered as satisfied if the Agents produce
a certified extract from the Chief Engineer‟s log showing the quantity retained
on board as ascertained by measurement or ullages.
14.18.04
Where the liquid fuel has first been landed and the Agents wish to
transfer a quantity from the landed cargo to the bunkers the duty will be paid on the
quantity on a Bill of Entry, which will then be reshipped under claim for Drawback on
a Drawback Shipping Bill. If the consignment is bonded, the transfer should be
effected on a ex-bond Shipping Bill.
14.18.05. In cases in which a Bill of Entry for consumption of the full manifested
quantity has been filed before a decision to transfer the fuel oil to bunkers is
reached, the only course is open is to submit a Shipping Bill under claim for
Drawback.
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14.18.06
If the transfer takes place on a ship that is transferred from the foreign
to the coasting trade, duty becomes leviable on the Fuel oil. Such oil imported as
cargo by one vessel should not be allowed to be subsequently manifested for
transhipment to the bunkers of another vessel, as fuel oil imported as cargo is not
“stores” and therefore Section 86(2) of the Customs Act, 962 does not apply.
*****